*
March headline CPI +2.83 y/y vs +3.30% in poll
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March core CPI +1.75% y/y vs +1.82% in poll
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Inflation seen below 2.5% in Q2 - ministry
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Cuts 2023 headline inflation forecast to 1.7-2.7% from
2-3%
(Adds details, official's quotes)
By Kitiphong Thaichareon and Orathai Sriring
BANGKOK, April 5 (Reuters) - Thailand's headline
inflation cooled to its lowest rate in 15 months in March and
came in below expectations due to lower energy and food prices,
with the trend likely to continue this year, the commerce
ministry said on Wednesday.
The headline consumer price index (CPI) rose 2.83% in March
from a year earlier, compared with a forecast rise of 3.30% in a
Reuters poll, and against February's 3.79% increase.
The core CPI index was up 1.75% in March from a year ago,
the slowest pace in 14 months and under a forecast increase of
1.82%.
Headline inflation returned to the central bank's target
range of 1% to 3% for the first time in 15 months, and the
commerce ministry expects it to remain within the range for the
rest of this year.
Last week, the central bank raised its policy rate for a
fifth straight meeting and said its policy tightening would
continue since, while inflation was slowing, it remained higher
than in the past.
The central bank has hiked the benchmark interest rate by a
total of 125 basis points since August to 1.75% to contain price
pressures.
The commerce ministry forecast headline inflation would fall
further later this year, helped by lower oil prices, government
support measures and a high base last year, senior ministry
official Wichanun Niwatjinda told a news conference.
Inflation in April, however, might not fall much because of
spending ahead of a general election on May 14, he said.
"But inflation will definitely be lower than 2.5% from May,"
he said, adding it would be around 1% to 1.5% from June.
The ministry now predicts headline inflation to be 1.7% to
2.7% this year, down from a previous forecast of 2% to 3%, the
ministry said.
In January-March, headline inflation was 3.88%, with the
core rate at 2.24%.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and
Satawasin Staporncharnchai; Editing by Martin Petty, Ed Davies)
