By Amanda Lee
Thailand's inflation cooled in June, as energy prices continued to fall due to the easing of Middle East tensions.
The consumer-price index rose 2.42% last month from a year ago, government data showed Monday. That is lower than May's 2.79% increase and below the 2.70% rise projected by economists polled by The Wall Street Journal.
Core inflation, which excludes volatile fresh food and energy prices, rose to 1.23%, up from May's 0.92%.
The Southeast Asian country's inflation had picked up in recent months on a jump in energy prices stemming from the Middle East conflict. Thailand relies heavily on crude oil imports from the region.
In recent weeks, oil prices have declined as the war between the U.S. and Iran de-escalates and the Strait of Hormuz gradually reopened.
The Bank of Thailand said in its latest monthly economic and monetary conditions report that the economy remained stable in May compared with April.
The central bank said inflation for the energy category decreased slightly in May due to lower global crude prices, despite headline inflation remaining high.
Policy makers are likely to continue looking through the transitory, supply-driven increase in inflation, with little impetus to adjust interest rates amid uneven and slow economic growth, DBS economists said in a recent report.
Write to Amanda Lee at amanda.lee@wsj.com