Thailand Inflation May 2021


Thailand: Inflation moderates in May

June 4, 2021

Consumer prices dropped 0.93% from the previous month in May, swinging from April's 1.38% increase. May's result marked the sharpest fall in prices in just over a year. The figure was largely driven by dropping prices for food and non-alcoholic beverages, and housing and furnishings.

Inflation eased to 2.4% in May below April’s 3.4%, but nevertheless marked the second consecutive month of rising prices in annual terms. As such, the trend improved, with the annual average variation of consumer prices coming in at minus 0.1% in May (April: -0.6%). Meanwhile, core inflation ticked up to 0.5% in May, from April’s 0.3%.

Regarding the outlook for inflation, Krystal Tan and Sanjay Mathur, economists at ANZ, commented:

“Looking ahead, base effects will push inflation lower. A constrained economic recovery amid an ongoing virus outbreak and prolonged absence of foreign tourists will also cap demand-side price pressures. […] Overall, inflation is expected to stay well-contained within the Bank of Thailand’s (BoT) 1.0-3.0% target band.”

FocusEconomics Consensus Forecast panelists see inflation returning in 2021, with consumer prices rising 1.1%, which is up 0.1 percentage points from last month’s forecast, while in 2022 panelists predict average inflation of 1.1%.

Author:, Economist

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Thailand Inflation Chart

Thailand Inflation May 2021

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

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