Thai headline inflation slows to 2.79% in May, below forecast


BANGKOK: Thailand's headline consumer price index rose at a slower pace in May and less than expected on lower oil, fresh vegetables and meat prices, the Commerce Ministry said on Friday, with no significant rise in inflation expected in the coming months.

* The headline CPI rose by 2.79% in May from a year earlier, below the 3.10% seen in a Reuters poll, and followed a rise of 2.89% in April.

* Headline inflation could reach 3% in June, Nantapong Chiralerspong, head of the Trade Policy and Strategy Office, told a briefing.

* Monthly inflation is not expected to be too high as oil prices were not as high as previously estimated, he said.

* The government's consumer subsidy scheme is helping to stimulate the economy and build confidence while not exerting pressure on inflation, Nantapong added.

* The core CPI, which excludes volatile energy and fresh food prices, rose by 0.92% in May from a year earlier.

* The ministry maintained its full-year inflation forecast of 1.5% to 2.5% this year, inside the central bank's target range of 1% to 3%.

* Bank of Thailand Governor Vitai Ratanakorn said this week he expected headline inflation at 3.0% this year and 1.4% next year, while signalling no policy rate change for now. The next rate meeting is on June 24. - Reuters 

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