Customers browse and purchase shrimp at a store participating in the government's Thai Chuay Thai Plus" co-payment scheme at a market in Nakhon Ratchasima province on Tuesday. (Photo: Prasit Tangprasert)
The Bank of Thailand expects headline inflation to peak at 5.2% in October this year, driven by rising oil imports and the government's subsidy measures.Speaking at the Governor Connect event on Tuesday, central bank governor Vitai Ratanakorn said the government's 400-billion-baht emergency loan decree, together with surging oil imports and supply shortages caused by prolonged war in the Middle East, are the main factors pushing up inflation in Thailand.
The government's 200-billion-baht "Thais Help Thais" subsidy scheme, scheduled for June-September this year, is expected to gradually push up headline inflation.
"We expect headline inflation to rise to a peak of 5.2% in October this year, then gradually ease, declining significantly in the second quarter of next year to 1.3%, assuming the war in the Middle East comes to an end," Mr Vitai said.
As inflationary pressures are not considered severe at this stage, the regulator is expected to maintain its policy interest rate.
