Thailand's Inflation Surges to Highest in 14 Years... Last Month's Inflation Up 7.66%

[Asia Economy Reporter Jeon Jinyoung] Thailand's inflation rate in June rose to the highest level in 14 years.

According to Bloomberg and other sources on the 5th, Thailand's Consumer Price Index (CPI) last month increased by 7.66% compared to the same month last year.

This exceeds the market expectation of around 7.50% and the May increase rate of 7.10%, marking the highest level in 14 years since July 2008.

The authorities attributed this price increase to factors such as rising fuel costs and the base effect.

Inflation in the second quarter of this year rose by 6.46%, and the authorities expect a similar level to be maintained in the third quarter.

Thailand's current benchmark interest rate is at a record low of 0.5%. However, there is a prevailing analysis that a rate hike will be inevitable due to inflationary pressures.

Financial experts expect the Bank of Thailand to raise interest rates once more in the second half of the year following the increase in August.