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 |