Thailand CPI likely to increase marginally in 2016

Lower oil prices weigh on Thailand's headline inflation, this factor, though it will start waning out from base in Q1 2016. The core inflation further dropped to 0.68%yoy in December.

It averaged 1.05 in 2015, reduced from its previous year's value. Energy prices dropped  by 13.4% in December and were 14.5% down in 2015, making them biggest pullback on the prices.

"CPI inflation was negative throughout 2015 and will increase only marginally in 2016, in our view. Inflation averaged -0.9% in 2015, and as a result of the sharp fall in oil prices recently, we lower our 2016 inflation forecast to 1.0%, with risks still biased to the downside", says Barclays in a research note. 

Bank of Thailand, in its recent monetary report lowered both its growth and inflation forecasts for 2015 and 16,  now it forecasts inflation at 0.8% in 2016.