Thailand Inflation


Thailand: Inflation falls in July

August 4, 2014

In July, consumer prices fell 0.08% over the previous month, which was in line with the 0.10% decrease tallied in June. According to the Ministry of Commerce, July’s decline resulted from lower prices for food and non-alcoholic beverages, as well as for housing and furnishing.

Annual headline inflation fell from 2.4% in June to 2.2% in July, which marked the lowest rate in four months. The result undershot market expectations of the inflation rate remaining stable at 2.4%. The drop in inflation rate reflects the effort of the military junta to keep prices under control in order to preserve purchasing power and support private consumption.

Core consumer prices, which exclude prices for energy and fresh food prices, rose 0.10% over the previous month (June: +0.05% month-on-month). In addition, annual core inflation inched up to 1.8% (June: 1.7%). Core inflation is still within the Central Bank’s target range of 0.5%–3.0%.

The Bank of Thailand projects that inflation will average 2.6% in 2014 and 2.5% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 2.4% in 2014, which is unchanged from last month’s Consensus. For 2015, panelists see average inflation at 2.8%.

Author:, Senior Economist

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Thailand Inflation Chart

Thailand Inflation July 2014

Note: Annual and monthly variation of consumer price index in %.
Source: Ministry of Commerce and FocusEconomics calculations.

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