Thailand’s inflation likely to turn positive in 2016

Thailand's inflation data gave a downward surprise to the analysts. This surprise is because of two factors first due to low energy prices and another is base effects. Due to the base effects, the low inflation rate is expected to continue till December. 

The food and vegetables also recorded a sharp fall and pull the inflation rate down. The CPI inflation rate remained in negative territory in 2015 is expected to increase slowly in 2016. 

"We maintain our 2015 inflation forecast of -0.8%. We forecast 2016 inflation at 1.5%, with risks tilted to the downside. In its recent monetary policy report, the Bank of Thailand lowered both its growth and inflation forecasts for 2015 and 2016, and now forecasts inflation of -0.9% in 2015, and 1.2% in 2016", notes Barclays.