Thailand: Lowest inflation level since 2009 – ANZ

Thailand’s April headline inflation fell to a record low since the GFC. Economists at ANZ Bank expect inflation to remain negative in the near-term, thus allowing the Bank of Thailand to continue with its easing stance. USD/THB trades at 32.4805.

Key quotes

“On a sequential basis, headline CPI fell by a much larger than anticipated 2.03% m/m in April. This was primarily due to a 19.2% m/m (March: -6.7% m/m) decline in energy prices.” 

“Core CPI edged down 0.07% m/m in April (March: -0.02% m/m), or 0.41% on an annual basis.”  

“Weak inflation dynamics remain supportive of further easing. We continue to expect the BOT to undertake one additional 25bps rate cut in May.”