BANGKOK (Reuters): Thailand's annual headline inflation rate slowed in June as fresh food prices decelerated and the impact of last year's low base of electricity prices ended, the commerce ministry has announced.
The headline consumer price index (CPI) rose 0.62% in June from a year earlier, slowing from the previous month's annual rise of 1.54%, and compared with a forecast increase of 1.12% in a Reuters poll.
The June figure again slipped below the central bank's target range of 1% to 3%.
Fresh food prices slowed in June because of favourable weather, while other goods prices had a limited impact on inflation, the ministry said in a statement.
The annual headline inflation rate in the third quarter is expected to be close to the second quarter's 0.78% pace, Poonpong Naiyanapakorn, the director of the trade policy and strategy office, told a press conference.
Headline inflation is expected to be more than 1% in the fourth quarter, he added.
Current inflation remains appropriate for the economy, he said.
"It is stable and predictable for both business operators and households to make plans," he added.
In the first six months of 2024, average annual headline inflation was 0.0%, and the commerce ministry retained its forecast for the year of between 0% to 1%.
The Bank of Thailand has said it expects headline inflation to return to the target range in the fourth quarter. It has been keeping interest rates at decade highs despite intense government pressure to reduce borrowing costs to boost economic growth.
The core CPI, which excludes volatile food and energy prices, rose 0.36% on the year in June and increased 0.41% in the first half of 2024.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; Editing by Ed Davies and Kim Coghill) - Reuters
