August 1, 2011 / 4:15 AM / in 7 years

Thai annual inflation flat in July

 * July headline CPI +4.08 pct y/y vs +4.2 pct in Reuters
 * poll
 * July core CPI +2.59 pct y/y vs +2.7 pct in Reuters poll
 * July food/beverage prices +7.17 pct y/y vs +7.76 pct in
June
 * Economists expect another interest rate rise this month
 BANGKOK, Aug 1 (Reuters) - Data from the Commerce Ministry: 	
 	
 KEY DATA:          	
 Thai consumer price index (base 2007)	
  Month          July    June     May      Apr     Mar     Feb      
  Headline CPI 112.74  112.54   112.39  112.01  110.49  109.95   
  %y/y change   +4.08   +4.06    +4.19   +4.04   +3.14   +2.87    
  %m/m change   +0.18   +0.13    +0.34   +1.38   +0.49   +0.40    
 
  Core CPI    106.35   106.27   106.08  105.59  104.83  104.54  
  %y/y change  +2.59    +2.55    +2.48   +2.07   +1.62   +1.45    
  %m/m change  +0.08    +0.18    +0.46   +0.73   +0.28   +0.14    
 
  Food/Beverage 
  %y/y change  +7.17    +7.76    +8.38   +8.59   +5.87   +5.15     
  %m/m change  -0.20    +0.44    +0.77   +3.12   +0.76   +0.64    
 
  Non-Food/Beverage 
  %y/y change  +2.21    +1.81    +1.69   +1.35   +1.53   +1.53    
  %m/m change  +0.42    -0.07    +0.08   +0.30   +0.33   +0.25    
	
CONTEXT:         	
 - Economists expect the Bank of Thailand (BOT) to raise its
benchmark rate, the one-day repurchase rate , by 25
basis points to 3.50 percent at the next meeting on Aug. 24 to
combat inflation.	
 - The central bank has increased the rate eight times in the
past nine meetings since July 2010 from a record low of 1.25
percent set to help the economy during the global financial
crisis, making it one of Asia's most hawkish.          	
 - Economists generally expect the policy rate to rise to
3.50 percent by the end of the year, but some say it could be
higher.	
 - Bank of Thailand Assistant Governor Paiboon
Kittisrikangwan has said the benchmark interest rate was likely
to rise further this year because core inflation, which excludes
energy and fresh food prices, could at some point exceed the
target range of 0.5-3.0 percent, which guides monetary policy.	
 - On July 22, the central bank raised its 2011 core
inflation forecast to 2.4 percent from 2.3 percent but
maintained its prediction for headline inflation at 3.9 percent.
However, it said those forecasts did not fully take into account
the incoming government's policies because of a lack of clarity
at this stage. .	
 - The new government, after an election on July 3, has
pledged a range of populist measures from big wage increases to
infrastructure projects to computers for school children. It
should take office around mid-August. . 	
	
 LINKS:       	
 For Reuters poll 	
 For details, see Commerce Ministry website: here
  	
	
 (Reporting by Kitiphong Thaichareon; Writing by Viparat
Jantraprap; Editing by Alan Raybould)	
 
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