Consumer prices in Thailand rise for fourth consecutive month in July

Consumer prices in Thailand rose for the fourth consecutive month in July, although at a considerably slower pace against a backdrop of fresh food prices.

The headline consumer price index edged up 0.1 percent in July from a year earlier after rising 0.38 percent in June. A Reuters poll had forecasted a rise of 0.45 percent in June. However, inflation in July eased 0.35 percent m/m.

Meanwhile, core consumer price index, which removes volatile food and energy prices, went up 0.76 percent from last year and 0.06 percent month-over-month in July, compared with the poll's median forecast for a 0.80 percent on-year increase and a 0.08 percent on- month rise. From January to July, headline CPI fell 0.07 percent and core CPI increased 0.73 percent y/y from the same period a year ago.

However, inflation in Thailand remains subdued, bogged down by government price controls, subsidies and sluggish consumption amid an environment of inflated household debt. Low rate of inflation is a major reason for the Bank of Thailand to leave its key interest rate unchanged at 1.50 percent since April last year.

The current interest rate is just a quarter-point above the record low during the global financial crisis. Meanwhile, the central bank next reviews monetary policy on August 3, and most economists expect it to remain on hold again.