Thailand Sets Inflation Target at 5% – PM

Thailand said it will aim to keep inflation below 5% this year amid a global surge in prices of food and energy.

Prime Minister Prayuth Chan-ocha told a news conference that the government is able to manage inflation in Thailand, which he said is still among the lowest in the world.

“Many people are worried about inflation. The government is also worried and has already helped with this,” the prime minister said.

Inflation in April reached 4.65% year-on-year, down from a peak of 5.73% in the previous month.

Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput had signaled that the central bank does not plan to hike interest rates as economic recovery remains weak.

Thailand’s economy last year grew 1.5% and was the slowest in the region.

Sethaput said that the BOT is unlikely to switch now to hawkish policy since the composition of the country’s price increases “reflected overwhelmingly cost-push, supply-side type inflation. There was little to no evidence of any demand-side inflationary pressures.”

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