Thailand: Inflation to remain negative – ANZ

Thailand’s headline inflation declined in March owing mainly to weaker energy and food prices, economists at ANZ Bank report. USD/THB is trading at 32.740.

Key quotes

“Headline CPI fell 0.86% m/m in March, following a 0.08% decline in the previous month. The decline was led by lower prices of energy (-6.70% m/m) and food (-0.25% m/m).”

“Core CPI also edged down 0.02% m/m in March (February: 0.09%), or 0.58% on an annual basis.”

“We continue to expect the Bank of Thailand (BoT) to cut its policy rate by 25bps in its May meeting.”