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Feb headline CPI +3.79 y/y vs +4.18 in poll
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Feb core CPI +1.93 y/y vs +2.10 in poll
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Inflation likely to be below 4% for Q1 - ministry
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Keeps inflation forecast at 2% to 3% this yr
(Adds quotes from senior official paragraphs 6-9)
By Orathai Sriring and Kitiphong Thaichareon
BANGKOK, March 7 (Reuters) - Thailand's headline
inflation dropped to its lowest rate in 13 months in February
and came in below expectations, commerce ministry data showed on
Tuesday, helped by easing energy and food prices.
The headline consumer price index (CPI) rose 3.79% in
February from a year earlier, compared with a forecast rise of
4.18% in a Reuters poll, and against January's 5.02% increase.
Inflation remains above the Bank of Thailand's target range
of 1% to 3%, suggesting the central bank will raise its key
interest rate again at its next meeting on March 29 as it
attempts to get inflation back within target.
The central bank has raised its policy rate by a total 100
basis points since August to 1.50% to contain price pressures.
The core CPI, which excludes fresh food and energy prices,
rose 1.93% in February from a year earlier, less than a forecast
increase of 2.10% in the poll and against January's 3.04% rise.
Senior commerce ministry official, Wichanun Niwatjinda, said
inflation is expected to be below 4% in the first quarter, due
to a high base last year.
In 2022, headline inflation hit a 24-year high of 6.08%,
with the core rate at 2.51%.
"We expect inflation in March to slow down or stay close to
this month's (February) level. It should not be much higher or
lower than this," Wichanun told a news conference.
Besides the falling energy and food prices, interest rate
increases had also slowed consumer spending and investment in
some areas, he said, adding inflation could drop close to zero
or contract in the second half of the year if oil prices fall
sharply.
The ministry, however, is maintaining its forecast for
headline inflation at 2% to 3% this year for now.
(Reporting by Orathai Sriring and Kitiphong Thaichareon;
Editing by Martin Petty)
