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Thailand’s inflation for September drops to 0.30%
Thailand’s inflation rate for September has dropped to 0.30% compared to 0.88% in August. This decline is attributed to lower energy and food prices.
Key Takeaways
- Thailand’s inflation rate for September has dropped to 0.30% due to reductions in energy and food prices.
- The prices of numerous food items and non-alcoholic drinks in Thailand fell in September for the first time in 23 months, mainly due to increased supplies of pork and vegetables.
- Inflation for the whole year in Thailand is expected to be 1.35%, with further price cuts on food items and energy likely to result in a possible negative inflation rate in the fourth quarter.
In September, the prices of several food items and non-alcoholic drinks fell for the first time in 23 months, primarily due to increased supplies of pork and vegetables. On the other hand, non-food and drink items saw a 0.59% increase in prices.
Overall, it is expected that inflation for the whole year will be around 1.35%, with further price cuts on food items and energy likely to cause a slowdown in the fourth quarter.
Thailand’s economic recovery remains intact, but the country faces inflation risks due to factors such as the El Nino weather pattern, higher food prices, oil prices, higher wages, and government policies.
The overall financial system in Thailand is strong, but there is concern about high household debt. The BoT recently raised key interest rates unexpectedly, and revised growth forecasts for this year and 2024.
The governor emphasized the need to examine the country’s capacity for long-term growth. He also stated that instead of fiscal spending, it is more important to improve the ease of doing business and reduce regulations to attract more investment. Additionally, the central bank mentioned that the decline in the value of the baht is in line with regional trends.
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