Lower oil prices weigh on Thailand's headline inflation, this factor, though it will start waning out from base in Q1 2016. The core inflation further dropped to 0.68%yoy in December.
It averaged 1.05 in 2015, reduced from its previous year's value. Energy prices dropped by 13.4% in December and were 14.5% down in 2015, making them biggest pullback on the prices.
"CPI inflation was negative throughout 2015 and will increase only marginally in 2016, in our view. Inflation averaged -0.9% in 2015, and as a result of the sharp fall in oil prices recently, we lower our 2016 inflation forecast to 1.0%, with risks still biased to the downside", says Barclays in a research note.
Bank of Thailand, in its recent monetary report lowered both its growth and inflation forecasts for 2015 and 16, now it forecasts inflation at 0.8% in 2016.
