Economy Thailand’s inflation drops to its lowest in 16 months By Reuters May 3, 2023 Reuters/Chalinee Thirasupa Headline inflation returned to the central bank's target range of one to three percent for the second month in a row Thailand’s headline inflation dropped to its lowest in 16 months in April, coming in close to expectations owing to lower energy and food prices and a high base in 2022, the commerce ministry said on Wednesday. The headline consumer price index (CPI) rose 2.67 percent in April from a year earlier, compared with a forecast rise of 2.70 percent in a Reuters poll, and against March’s 2.83 percent increase. The core CPI index was up 1.66 percent in April from a year ago, and was under a forecast increase of 1.70 percent. Headline inflation returned to the central bank’s target range of one to three percent for the second month in a row. The commerce ministry on Wednesday said headline inflation should fall sharply in May. In March, the Bank of Thailand raised its policy interest rate by a quarter point to 1.75 percent, and said its policy tightening would continue since inflation risks persisted. It will next review policy on May 31, when economists expect a further hike. Last month, the commerce ministry cut its forecast for headline inflation to between 1.7 percent and 2.7 percent this year, from a previous forecast of two to three percent. In January-April, headline inflation was 3.58 percent, with the core rate at 2.09 percent, the ministry said on Wednesday.