Thailand's main Consumer Price Index (CPI) in April reached 4.65% year on year (YOY). The Thai Ministry of Commerce said that inflation was driven by rising energy and food prices.
Thailand's inflation realization is still below analyst projections in a Reuters poll with inflation reaching 4.98% yoy and following a surge in inflation of 5.73% yoy in March, the fastest pace in 13 years.
Although inflation slowed in April, helped by the base effect, headline inflation is likely to exceed 5% in the coming months. Trade Ministry official Ronnarong Phoolpipat said this happened after the end of the diesel price restriction.
"With rising oil prices, generally product prices will also increase. But that does not mean inflation will be much higher. We also have to look at many factors," he said.
Government measures including price controls on essential goods and subsidies have helped slow the rise in inflation, the trade ministry said.
The trade ministry also maintains its inflation forecast in the 4%-5% range this year, exceeding the central bank's target range of 1%-3%.
However, the central bank is not expected to raise interest rates soon as it has said its priority is to support growth. It also predicts inflation will exceed 5% in the second and third quarters before easing.
The core CPI index, which strips out volatile energy and fresh food prices, was up 2.0% in April from a year earlier, unchanged from the previous month, and in line with forecasts.
In the January-April period, headline inflation was 4.71%, with a core rate of 1.58%.
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