Thailand''s Inflation Continues to Ease in November
BANGKOK - Thailand's inflation continued to ease for the sixth straight month in November, largely due to lower retail fuel prices.
Thailand's consumer price index rose 1.26% on-year in November, compared with October's 1.48% on-year rise, the Commerce Ministry said Monday. November's CPI fell 0.12% from the previous month.
Core inflation, which excludes volatile food and energy prices, was 1.60% on-year, easing from October's 1.67%. When compared with the preceding month, November's core CPI edged up 0.11%.
Amparwon Pichalai, deputy permanent secretary of the Commerce Ministry, said that consumer prices have risen at a slower rate because of falling retail fuel prices, in line with declines in global crude oil prices.
"Today's CPI data for November was in line with our expectations and consensus, and continues to show the impact of lower oil prices on the economy," said Rahul Bajoria, regional economist at Barclays Research.
Because of easing inflation, economists expect the central bank's monetary policy committee to maintain its accommodative monetary policy stance for some time.
"Subdued price development should give flexibility for the MPC to remain accommodative for a longer period of time," said Kobsidthi Silpachai, head of Capital Markets Research at Kasikornbank in Bangkok.
The Bank of Thailand has maintained its benchmark interest rate at 2.0% after it last cut the rate by 0.25 percentage point in March.
In the first 11 months of this year, Thailand's headline and core inflation was 2.02% and 1.57% respectively, official data also showed.
The Commerce Ministry still maintained its 2014 inflation forecast at 2.0%-2.8%, while projecting Thai inflation at 1.8%-2.5% in 2015.
(END) Dow Jones Newswires 12-01-140059ET