Thailand’s inflation rate continued its downward trajectory in July, with headline consumer prices dropping by 0.7% year-on-year, marking an even sharper decline than June’s 0.25% contraction, according to data released by the commerce ministry on Wednesday.
The July figure came in well below economists’ expectations of a 0.4% decrease, as polled by Reuters, and remained outside the Bank of Thailand’s desired inflation range of 1% to 3%.
The core consumer price index—which strips out fluctuating food and energy costs—recorded a modest 0.84% uptick compared to the same period last year. This core figure fell just shy of analyst projections at 0.90%, underscoring sluggish underlying price momentum in Southeast Asia’s second-biggest economy.
Commerce ministry officials maintained a subdued outlook for the near term, projecting headline inflation to average minus 0.5% in the third quarter. Nevertheless, authorities reiterated their 2025 forecast, anticipating headline inflation to stay within a narrow 0% to 1% band, and stressed that the current environment does not yet signal the onset of deflation.
