Headline consumer price index (CPI) dropped by 0.02% YoY in August largely due to subsidized utility fees. The drop in headline CPI comes as a negative surprise to the market. Core CPI which excludes volatile food and energy prices increased by 0.07% YoY.
Both inflation indicators slipped street expectations where the forecast for headline CPI was 0.34% and core CPI was 0.18%.
The unexpected CPI numbers could further lead the Thai baht to the negative territory, benefiting exports. Thai baht is trading at USD 32.410/THB down by 0.205 as of Thailand time 11:02 am.