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Moderate October Inflation Should Mean Tightening Remains Measured

THAILAND

Both core and headline CPI inflation in Thailand were as expected for October. The CPI moderated to 6% y/y from 6.4% the previous month due to lower food and oil prices. Core rose slightly to 3.2% y/y from 3.1%. The Ministry of Commerce expects inflation to continue moderating over the rest of 2022.

  • This should be reassuring to the Bank of Thailand, who began its tightening cycle only in August with a 25bp hike. Contained inflation should mean that future moves are likely to remain at this pace.
  • Headline and core inflation in Thailand appear to have peaked recently unlike in most countries in the region.
Thailand inflation y/y%

Source: MNI - Market News/Refinitiv/Ministry of Commerce

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