Bangkok: July saw a deflation rate of 0.70% in Thailand, driven by declining prices in vegetables, fruits, and energy, contributing to a reduction in the overall cost of living.
According to Thai News Agency, the Ministry of Commerce reported that Thailand's inflation rate ranks as the 10th lowest among 140 economies worldwide and the second lowest in the ASEAN region. This trend is projected to continue into August. Mr. Poonpong Naiyanapakorn, Director of the Office of Trade Policy and Strategy (OTPS) and spokesperson for the Ministry of Commerce, announced that the Consumer Price Index (CPI) for July 2025 was recorded at 100.15, a decrease from 100.86 in the same month the previous year. This resulted in a year-on-year decline in headline inflation by 0.70%. The decrease was mainly attributed to reduced prices of fresh vegetables, fruits, and personal care products, along with lower energy costs, such as fuel and electricity, which have been supported by government assistance measures. Some items, such as rent and pet food, experienced price increases, but these were not significant.
Core inflation, which excludes fresh food and energy, saw an expansion of 0.84% in July, slowing from 1.06% in June. Compared to June 2025, the Consumer Price Index decreased by 0.27%, influenced by a 0.60% drop in food and non-alcoholic beverage prices. Prices for pork, fresh fruits and vegetables, and vegetable oil declined due to increased production and lower raw material costs. Other non-food and beverage categories saw a reduction of 0.06%, driven by lower prices for personal care items, clothing, and fuel, aligning with global oil prices and promotional activities.
Reviewing the first seven months of 2025, the average inflation rate expanded by only 0.21% compared to the previous year, remaining within the Ministry of Commerce's forecast range of 0.0-1.0% (mid-point 0.5%). As of June 2025, Thailand was ranked as having the 10th lowest inflation rate globally and the 2nd lowest in ASEAN, following Brunei, illustrating the stability of the Thai economy.
For August 2025, inflation is anticipated to stay low due to various factors, including lower global crude oil prices compared to the previous year, government measures to cut electricity and living costs, low prices for fresh fruits and vegetables due to increased production, and tourism promotion activities that are reducing service fees. The Ministry of Commerce maintains its 2025 inflation forecast at 0.0-1.0%.