The Bank of Thailand (BoT) is expected to keep its policy rate on hold at 1.75 percent at its meeting on March 20 even though concerns of financial stability are likely to persist, according to the latest report from ANZ Research.
On a sequential basis, headline CPI rose by 0.24 percent m/m in February, following a 0.02 percent decline the month before. The turnaround was driven by higher energy prices (+1.67 percent from -1.47 percent). While raw food prices continued to rise, the pace of increase in m/m terms slowed.
Meanwhile, core inflation surprised to the downside and eased to a 13-month low of 0.60 percent y/y. In m/m terms, core CPI declined marginally (0.02 percent). Although the prices of clothing and footwear rose at a faster pace, the decline in personal and medical care prices (0.15 percent m/m) was a drag.
Housing, recreation and education as well as tobacco and alcoholic beverage prices were broadly flat m/m.


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