July headline CPI 0.38 yy vs 0.64 in Reuters poll
July core CPI 0.86 yy vs 0.90 in poll
Headline CPI seen up slightly in August ministry

BANGKOK, Aug 7 Reuters Thailand39;s annual headline inflation was weaker than expected in July, helped by lower food and energy prices, and the commerce ministry said on Monday it projected smaller consumer price rises for the rest of the year.

The headline consumer price index CPI increased 0.38 in July from a year earlier, compared with a forecast rise of 0.64 in a Reuters poll, and against June39;s 0.23 rise.

It was the third successive month headline inflation was below the central bank39;s target range of 1 to 3.

The headline CPI in August could rise slightly as some food prices pick up due to drought, while energy prices are likely to increase, Poonpong Naiyanapakorn, head of the ministry39;s trade policy and strategy office, told a press conference.

Average headline inflation, however, should remain low at 0.36 in the second half of 2023, he added.

We think it39;s lower than 1 every month in the remaining five months. But worrying factors are drought and oil prices, he said.

On Monday, the commerce ministry maintained its prediction of average annual headline inflation at 1 to 2, which would be reviewed in September, Poonpong said.

A delay in the formation of a new government has yet to affect consumers39; purchasing power, he added.

In July, the core CPI rose 0.86 from a year earlier, compared with a forecast for a…