Thailand – Inflation likely bottomed out in May

Thailand will release May CPI data on 2 June. Negative inflation is expected for a fifth consecutive month of 1.29% y/y, mainly due to lower global oil prices. 

However, It is believed that the inflation has bottomed out, as a weaker Thai baht will likely raise production costs via higher import costs for energy, raw materials and capital goods. Thailand is a net oil importer, and a potential rebound in oil will put upward pressure on inflation.