May 30, 2014 / 4:49 AM / 3 years ago

Thai May inflation seen picking up to 14-month high

BANGKOK (Reuters) - Thailand’s annual headline inflation rate likely rose to 2.59 percent in May, its highest level since March last year, adding to concerns for policymakers facing a rapidly cooling economy.

Inflation in April was a stronger-than-expected 2.45 percent.

The core rate - which strips out fresh food and energy prices - likely edged up to 1.70 percent in May from 1.66 percent in April, but was still well inside the central bank’s target range of 0.5-3.0 percent.

The headline rate has risen since January as a drought in parts of the country pushes up food prices and on higher retail fuel prices.

But inflation has still been relatively benign. The Commerce Ministry said on Thursday it would keep its 2.0-2.8 percent forecast range for this year.

Prices in Thailand has been curbed by government controls and subsidies as well as weaker domestic demand, which has been hurt by months of political unrest in Bangkok before the army seized control of the government on May 22 in a bid to restore order.

Reporting by Orathai Sriring; Editing by Kim Coghill

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below