Thailand Inflation


Thailand: Inflation moderates in August

September 2, 2014

In August, consumer prices fell 0.08% over the previous month, which met the 0.08% decrease tallied in July. According to the Ministry of Commerce, August’s decline resulted from lower prices for food and non-alcoholic beverages, as well as for vehicles and vehicle operation.

Annual headline inflation inched down from 2.2% in July to 2.1% in August, which marked the lowest rate in six months. The result undershot market expectations of the inflation rate inching up to 2.3%. The drop in the 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 0.09% over the previous month (July: +0.10% month-on-month). In addition, annual core inflation was stable at July’s 1.8%, which marks the highest rate since November 2012. 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 August 2014

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

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