• September headline CPI +6.41% YoY vs. +6.60% in Reuters poll
  • Seven core CPI +3.12% y/y vs. +3.20% in a survey
  • Ministry expects inflation to fall further in Q4
  • C.bank expected to raise rates again in November

BANGKOK, Oct 5 (Reuters) – Thailand’s headline inflation rate came in below expectations in September, decelerating from the previous month, data showed on Wednesday, but consumer prices were above target raised expectations of another interest rate hike in November.

The headline consumer price index (CPI) rose 6.41% in September from a year earlier, helped by easing energy prices and last year’s low base, and down from August’s 7.86% increase, which was a 14-year high, according to Commerce Department data. .

The reading compared to an expected 6.60% rise in a Reuters poll and the central bank’s target range of 1% to 3% for headline inflation.

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The core CPI, which excludes energy and fresh food prices, rose 3.12% in September from a year ago, also less than the expected rise of 3, 20%, and followed August’s 3.15% rise.

Inflation could decline further in the fourth quarter of this year, mainly due to government support measures for energy and food prices, the ministry said.

He expects headline inflation to average between 5.5% and 6.5% this year.

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The Bank of Thailand will take a gradual and measured approach to bringing inflation back to its target, according to Governor Sethaput Suthiwartnarueput.

Last week, the Bank of Thailand raised its key rate by a quarter point to 1.00% to contain inflation. He will then revise the rate on Nov. 30, when most economists expect another gradual hike.

The BOT expects headline inflation to average 6.3% this year before falling to 2.6% next year. It forecasts the base rate at 2.6% this year and 2.4% next year.

During the January-September period, headline inflation was 6.17% and the underlying rate was 2.26%.

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Reporting by Orathai Sriring, Kitiphong Thaichareon, Satawasin Staporncharnchai Editing by Kanupriya Kapoor

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