Easing inflation signals no change in policy rate
Play
Thailand's inflation eased in April, rising by just 2.47 per cent on year, according to the Commerce Ministry.
Compared to March prices, inflation also rose only 0.42 per cent.
The ministry's data shows that inflation in the first four months of this year went up by only 3.16 per cent, much below the 4-5 per cent target for the entire year.
Commerce Permanent Secretary Yanyong Phuangrach said at the press conference today that easing in inflation was due to lower food and fuel prices compared to the same period last year.
Increasing daily minimum wage to Bt300 in seven provinces, from April 1, pushed up inflation by only 0.1 percentage point, he added.
The Bank of Thailand's Monetary Policy Committee is widely expected to hold the policy rate at 3 per cent, as it convenes on May 2. Most economists see a spike in inflation in the second half, when the full impacts of oil prices and wage hike kick in. Some houses like Siam Commercial Bank did not expect any rate hike until next year.
