BANGKOK (Reuters) – Thailand’s inflation rate returned to the target range for the first time since May last year, lifted by higher energy and food prices, the trade ministry said on Monday.
Thailand’s main consumer price index rose 1.23% in December from a year earlier, within the central bank’s target of 1% to 3%, after an annual increase of 0.95% the previous month, the ministry said.
The figure compares with forecast growth of 1.47% in a Reuters poll.
Core CPI rose 0.79% in December from a year earlier, slightly below the forecast increase of 0.81%.
In 2024, average annual headline inflation was 0.40%, with core inflation at 0.56%.
Headline inflation in January is expected to be around 1.25% and above 1% in the first quarter of this year, Poonpong Naiyanapakorn, director of the ministry’s Trade Policy and Strategy Office, said at a press conference.
The ministry kept its forecast for headline inflation at between 0.3% and 1.3% in 2025, helped by expected stronger economic growth and government stimulus measures.
Last month, Finance Minister Pichai Chunhavajira said the Bank of Thailand would need to raise inflation to the middle of its target range and must ensure the competitiveness of the baht.
On December 18, the central bank left its key interest rate unchanged at 2.25%, following a surprise cut in the previous review in October.
It forecast headline inflation of 1.1% in 2025. The next rate review is on February 26.
