This graph shows Thailand's inflation treading uphill

Data hit a 13-month high at 3.6%.

According to DBS, it does not expect any changes to the policy rate (currently at 2.75%) post central bank meeting. On the economic front, there have been tentative signs of a turnaround in external demand.

Domestically, the pro-growth policies have already translated in strong private consumption numbers over the last few quarters. Coupled with the hike in minimum wages to THB 300/day across the remaining 70 provinces this month, price pressures are likely to continue building.

Here's more from DBS:

Notably, inflation ticked up to a 13-month high of 3.6% YoY in December.

Going forward, headline inflation is likely to continue inching upward, breaching 4% by 2Q. As such, the rate cut cycle is likely over, however, given the authorities’ pro-growth stance, monetary tightening in the first half of the year appears unlikely.

For the full-year, we have penciled in one 25bps rate hike in 4Q, taking the policy rate to 3.00% by end-2013.