Thailand's May Inflation Slows to 2.79% YoY, Below Central Bank Forecast

According to Thailand's Commerce Ministry data released on June 5, the country's consumer price index rose 2.79% year-over-year in May, decelerating from 2.89% in April and remaining within the central bank's target range. The slower inflation eases pressure for rate adjustments.

The Bank of Thailand maintains that current price pressures are temporary and has signaled willingness to tolerate short-term inflation spikes, noting that monetary tightening is ineffective against supply-driven shocks. The central bank's current policy rate remains appropriate, according to officials. The Commerce Ministry projects inflation will reach 3% in June and remain above 3% in the second half of the year.