Inflation Rises in Thailand, Falling Within BoT's Target Range for the First Time in Six Months

Forex - Thailand's inflation accelerated in the last month of 2024, exceeding the lower bound of the central bank's target range for the first time after staying below the threshold for six months. According to the announcement from the Thai Ministry of Commerce, the headline inflation in December was recorded at 1.23% year-on-year, up from 0.95% in November. However, this figure was below economists' forecast of 1.41%.

The Bank of Thailand (BoT) has an inflation target range of 1.0% to 3.0%. Core inflation, which excludes costs associated with private road transportation and accommodation, remained almost unchanged at 0.79% on a yearly basis. The consistent return of inflation to the target band may create some hope for the recovery of the economy and reduce the pressure on the BoT to cut interest rates. Monthly, headline inflation declined by 0.18%, while core inflation increased by 0.05%.