BANGKOK (Reuters) – Thailand’s lower-than-expected March inflation rate was mainly due to lower energy prices and government policies to alleviate cost of living pressures, the commerce ministry said on Monday, and did not reflect a slowdown in economic activity.
It added that slower global growth could weigh on prices.
A global economic slowdown brought on by U.S. tariffs would impact prices, Poonpong Naiyanapakorn, head of the Trade Policy and Strategy Office said, noting that foreign exporters impacted by the tariffs may also ship cheaper goods to Thailand.
Thai March inflation of 0.84% came in below forecast and lower than the central bank’s target range of 1% to 3%.
In the first quarter as a whole, inflation was at 1.08%, the ministry said, with second-quarter inflation of 0.15%.
With inflation below the target range, the full-year rate will also likely be below target, it said.
The central bank said earlier it would ensure inflation was not too low or too high.
(Reporting by Chayut Setboonsarng; Editing by John Mair and David Holmes)
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