Thailand's headline consumer price index (CPI) rose 5.89% in December from a year earlier, in line with analyst forecasts, but above the previous month driven by higher energy and food prices, government data showed on Thursday.
The index compared with a forecast for a 5.9% rise in December in a Reuters poll and followed November's 5.55% increase.
The pace remains well above the Bank of Thailand's (BoT) target range of 1% to 3%, reinforcing expectations that the central bank will raise its key interest rate at its next meeting on Jan 25, to bring prices back within target.
The BoT has already said it expects to keep raising interest rates through the first half of 2023, and any upside surprise in the data may see markets price in a longer tightening cycle.
The core CPI index was up 3.23% in December from a year ago,the ministry said, versus a forecast rise of 3.28%,
For 2022, headline CPI increased 6.08%, a 24-year high, while the core CPI index rose 2.51%.
Headline inflation is expected to slow to 2% to 3% in 2023, helped by a high base and a global slowdown, Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office, told a briefing on Thursday.
The index, however, is set to remain high in the first quarter this year due to a low base in the same period last year, but should not top 5%, Mr Poonpong said.
According to economists' forecast on Wednesday, the baht may get an early boost to start the year if the CPI is starting to rise again.
The Thai currency is set to be powered by an influx in Chinese tourists after Beijing rescinded most of its Covid controls over the past month, paving the way for a recovery in outbound travel.
