By Kitiphong Thaichareon and Satawasin Staporncharnchai

BANGKOK (Reuters) – Thailand’s headline inflation charge in August rose barely from the earlier month to a 14-year excessive, in keeping with forecast and reinforcing expectations of an extra rate of interest hike later this month.

The headline shopper value index (CPI) rose 7.86% in August from a yr earlier, pushed by power costs and final yr’s low base, commerce ministry information confirmed on Monday. That in contrast with a forecast rise of seven.85% in a Reuters ballot.

The tempo, the quickest since July 2008, picked up from July’s 7.61% rise and was far above the central financial institution’s goal vary of 1% to three%. Economists count on an extra rate of interest hike on the central financial institution’s subsequent assembly on Sept. 28.

The inflation charge, nonetheless, might have peaked in August, ministry official Ronnarong Phoolpipat instructed a information convention.

“Inflation stayed at 7% ranges for 3 months in a row, suggesting it has peaked and can come down if the worth scenario continues like this,” he stated.

The ministry sees inflation at round 5% within the fourth quarter and a variety of 5.5% to six.5% in the entire of 2022, he stated.

Authorities assist measures, together with an power subsidy, and a few value administration have helped sluggish the rise of inflation, he stated.

In August, the core CPI index, which strips out power and recent meals costs, rose 3.15% from a yr earlier, decrease than a forecast 3.20% rise, however sooner than July’s 2.99%.

Within the January-August interval, headline inflation was 6.14% and the core charge was 2.16%.