BANGKOK (Reuters) – Thailand’s inflation is expected to fall further and return to the central bank’s target range of 1% to 3% this year, helped by support measures, its finance minister said on Wednesday.
The government will continue to help ease the impact of energy prices, which will help hold down consumer prices, Arkhom Termpittayapaisith told reporters.
Expected support measures will reduce the cost of living, he said.
“The economy is not considered hot, it’s still in recovery, with consumption and tourism starting to rebound,” he said.
Headline inflation dropped to its lowest rate in 13 months of 3.79% in February, but was still above the central bank’s range, suggesting it will raise its key interest rate further this month.
The central bank has raised its policy rate by a total 100 basis points since August to 1.50% to contain price pressures.
(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Martin Petty)
