Thailand – Inflation likely bottomed out in May

Thailand will release May CPI data on 2 June. A negative inflation for a fifth consecutive month is likely at 1.29% y/y, mainly due to lower global oil prices, expects Standard Chartered. However, inflation is seemed to bottomed out, as a weaker Thai baht will likely raise production costs via higher import costs for energy, raw materials and capital goods. Thailand is a net oil importer, and a potential rebound in oil will put upward pressure on inflation.