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TUESDAY, November 28, 2023

Average headline inflation in 2022 was the highest in 24 years

Average headline inflation in 2022 was the highest in 24 years
THURSDAY, January 05, 2023

Thailand’s average headline inflation in 2022 hit 6.08 per cent, the highest in 24 years, the Trade Policy and Strategy Office (TPSO) said on Wednesday.

The inflation rate is still within the 5.5% to 6.5% range forecast by the Commerce Ministry, TPSO director Poonpong Naiyanapakorn said, adding that the last time Thailand’s headline inflation was this high was in 1998 when it rose to 8.1%.

Based on the consumer price index (CPI), headline inflation in December was 5.89% — 0.06% higher than the previous month — due to global energy prices that continued to soar since August, said Poonpong.

Core inflation in December remained the same as in the previous month at 3.23%, while the whole-year average was 2.51%.

The TPSO also reported consumer confidence index (CCI) in December at 50.4%, rising for the first time in 43 months, thanks to the continuing recovery of the domestic economy.

The TPSO forecast headline inflation in 2023 at 2-3% as it expects energy prices to stabilise amid the stagnating global economy. Also contributing to this number is the result of the government’s measures to reduce people’s cost of living.

The National Economic and Social Development Council, however, has predicted inflation in 2023 at 2.5-3.5%, the Bank of Thailand has predicted 3%, the Fiscal Policy Office 2.9%, and Krungsri Research 2.5%.