The Bank of Thailand informed the finance minister that inflation exceeded its expected level and should return to its normal pace late this year.
BOT governor Sethaput Suthiwartnarueput sent an open letter on the high inflation to the finance minister. The letter dated on April 8 read that the average headline inflation would be above the 1-3% range that the Monetary Policy Committee and the finance minister had jointly set on Nov 16, 2021, for 2022 and a medium term.
On March 30, the MPC predicted that the headline inflation in the next 12 months (from the second quarter of this year to the first quarter of next year) would run at 4.1%, exceeding the earlier set range.
The committee attributed the high inflation mainly to cost-push shocks while the demand-pull inflation remained low because domestic purchasing power was not quite strong as the economy had yet to fully recover and COVID-19 was causing uncertainties. (TNA)