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2026-11-06 11:10:28
[Thailand's October inflation rises to 3.9%, exceeding the central bank's target ceiling, complicating policy outlook] (1) Affected by rising international oil prices and floods pushing up food costs, inflationary pressures in Thailand have intensified, with the inflation rate exceeding the upper limit of the central bank's target range for the first time in more than three years. (2) Data released by the Thai Ministry of Commerce on Friday showed that the CPI rose 3.9% year-on-year in October, higher than 2.82% in September and far exceeding the median forecast of 3.33% by economists, exceeding the central bank's inflation target range of 1% to 3%. (3) This complicates the policy outlook of the central bank. Currently, the central bank is maintaining low borrowing costs to support the still weak domestic demand. (4) The central bank expects that this surge in inflation is only a temporary phenomenon and is not enough to justify an immediate interest rate hike. (5) The governor of the central bank said last week that if economic growth accelerates and inflation is higher than expected, the central bank will raise interest rates; he also believes that the current policy rate of 1% is appropriate.
