Thailand’s consumer inflation accelerated more than expected in October, exceeding the central bank’s target range as higher fuel prices driven by the Middle East conflict pushed up living costs.
The headline consumer-price index rose 3.9% from a year earlier, up from 2.82% in September, government data showed Friday.
The reading topped the median forecast of 3.5% in a Wall Street Journal poll of seven economists and exceeded the Bank of Thailand’s 1%-3% inflation target range.
Core inflation, which excludes volatile fresh-food and energy prices, was 1.58%, picking up from 1.50% in September.
The rise in headline inflation was largely driven by higher fuel prices, reflecting volatility in global energy markets stemming from the Middle East conflict, the government said.
Ahead of the release, DBS economists had forecast October inflation of 3.2%, citing rising diesel prices and a rebound in food inflation.
The increase was expected to be largely driven by supply-side pressures and broadly in line with the Bank of Thailand’s outlook, DBS said.
The central bank held its policy rate at 1.00% in October, viewing the expected rise in inflation as temporary while balancing price pressures against uneven economic growth.
The Bank of Thailand said the economy continued to benefit from the global technology and artificial-intelligence boom, although overall growth remained below potential and the benefits were concentrated in certain sectors.
Policymakers are watching whether higher energy and production costs will feed through to broader consumer prices and inflation expectations.
The Bank of Thailand’s next rate-setting meeting is scheduled for Dec. 23, its final meeting of the year.
Write to Jihye Lee at jihye.lee@wsj.com