Thailand Inflation Rises to 2.82% Amid Severe Flooding

Thailand's consumer price index rose 2.82% in September, marking the second consecutive monthly acceleration after an August increase of 2.53%. The Ministry of Commerce attributed the rise to higher oil and processed food prices, which were influenced by raw material costs and conflicts in the Middle East.

Severe flooding in Bangkok and several other provinces further strained the economy by disrupting transportation and fresh food supplies. The ministry estimates that these floods will add approximately 0.1 percentage point to the overall inflation rate.

While the current inflation rate remains within the Bank of Thailand's target range of 1% to 3%, the ministry narrowed its full-year inflation forecast to between 1.8% and 2.2%. Despite these upward pressures, the Bank of Thailand is expected to maintain its current policy stance, having held the benchmark interest rate at 1% for three consecutive meetings.