After the 1997 Asian economic crisis, the Bank of Thailand formulated a new long-term anti-inflationary monetary policy that the central bank has adhered to without wavering to this day.
Since year 2000 the target of monetary policy has been to keep core inflation within a range of zero to 3.5% over the next two years.
Since year 2000 the target of monetary policy has been to keep core inflation within a range of zero to 3.5% over the next two years.
The consumer price index measures the general level of prices for goods that households buy.
Core inflation is just the consumer price index without energy and fresh food goods which usually have more volatile prices than other goods.
The central bank is considering switching to using the consumer price index (headline inflation) instead of core inflation because core inflation has lagged headline inflation.
Production prices increased at a double digit pace in August (22% year-on-year) which clearly shows that there are inflationary pressures despite a recent decline in oil prices.
(Photo on right was taken during the BOT's annual economics symposium)
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