Thai inflation picks up slightly

Two days ago the Ministry of Commerce announced the inflation figures for June 2012, +2.56% YoY up from 2.53% in May.

Anything interesting?

  • House and furnishing prices increased 0.28% MoM (function of an increase in construction materials, rental fees, water and electricity chargers)
  • Food and beverage prices remained flat

Going forward?

  • We’ve mentioned continuously that inflation is only likely to pick up towards the end of 2012 at which point the BOT will increase rates.
  • Electricity fees will increase
  • The NGV, LPG and product price maintenance programs will end in August

Inflation Forecasts Comparisons
Bank of Thailand (Headline Inflation) 3.50%
Bank of Thailand (Core Inflation) 2.50%
Ministry of Commerce 3.3-3.8%
Fiscal Policy Office 3.60%
Source: BOT, MOC, FPO  
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