Thailand's December headline consumer prices rose on an annual basis for a ninth straight month, driven by higher oil prices and an increased purchases of food and non-alcoholic beverages, commerce ministry data showed on Wednesday. But the inflation rate remains low, giving the central bank room to keep monetary policy loose to help lift weak economic growth.
The headline CPI index increased 1.13 percent in December from a year earlier after November's 0.6 percent rise. A Reuters poll had forecast a rise of 1.13 percent in December. The headline rate was 0.19 percent in 2016, and the ministry has forecast it will be 1.5-2.0 percent this year. The core inflation rate, which excludes raw food and energy prices, was 0.74 percent in December, against the poll's 0.76 percent forecast.
Inflation in Thailand has been held down by state price controls, subsidies and soft domestic consumption. The Bank of Thailand has predicted headline inflation, which guides monetary policy, will be 1.5 percent in 2017, well inside its 1-4 percent target range. The central bank has kept its policy interest rate at 1.50 percent since a 25 basis point cut in April 2015.
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