Thai consumer price index (CPI) falls for first time in two years

Thailand’s inflation rate has fallen for the first time in 25 months, due to lower energy and food prices.

• Thailand’s inflation rate decreased for the first time in 25 months, primarily due to lower energy and food prices.
• The consumer price index fell by 0.31% in October compared to the previous year, below expectations.
• Despite the decrease in inflation, the Ministry still expects headline inflation to range between 1.0% to 1.7% for the year.

The consumer price index (CPI) decreased by 0.31% in October compared to the previous year, but the core CPI, which excludes volatile items, increased by 0.66%.

Headline inflation has been below the central bank’s target for six consecutive months. The ministry predicts headline inflation to be between 1.0% and 1.7% for this year. The Bank of Thailand recently raised interest rates, expecting growth and inflation to pick up next year. The next policy review is scheduled for November 29th.

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But the BoT is expected to keep the rate unchanged at 2.50% for the rest of 2023 and most of 2024, as inflation remains subdued and growth is lacklustre.