Thai Inflation Stays on Target, but Data-Center Risk Worth Watching

Dow Jones
Aug 05

1052 GMT - Thailand's inflation print for July doesn't move the needle on monetary policy, as growth considerations still outweigh price concerns, HSBC economists say. The outlook for inflation remains contained, with import competition capping price pressures, Aris Dacanay and Akiko Kitamura say in a note. HSBC continues to expect the Bank of Thailand to keep rates at 1.00% until at least end-2027, but there is one risk worth monitoring: data centers. So far, inflationary pressures from Thailand's massive data-center buildout have yet to materialize as facilities have yet to come online. But once they do, the sites will likely demand a substantial amount of Thailand's electricity generation and water supply, posing an upside risk to utility fees, and potentially building the case for a BOT adjustment.

 

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