September inflation beats expectations with end of state subsidies
An employee dresses the windows of an H&M store on the day stores reopen at the Siam Paragon shopping center in Bangkok on September 1, 2021, as restrictions on the Covid-19 coronavirus begin to ease across the country. (AFP photo)
The Consumer Price Index (CPI) rose more than expected in September with the end of government subsidies to utilities and rising energy prices, the Commerce Ministry said on Tuesday.
The CPI rose 1.68% in September year-on-year, the highest in four months, against a forecast of a 0.70% increase in a Reuters poll. It follows August’s 0.02% drop.
October’s CPI is expected to be similar to September’s, ministry official Wichanun Niwatjinda said at a press conference on Thursday.
Consumer prices in the fourth quarter are expected to rise further, driven by higher oil prices, improving economic activity following the easing of restrictions on coronaviruses and a lower baht, did he declare.
“Our inflation is not high like in other countries due to government support measures,” he said, adding that the main inflation was expected to be between 0.8% and 1.2% this year, unless there are additional government measures to reduce the cost of living.
In September, the core CPI index was up 0.19% from a year earlier, against a forecast of a 0.20% increase.
During the January-September period, the headline CPI rose 0.83% from the previous year, as the policy rate rose 0.23%.