Thailand’s June CPI Growth Slows to 0.62%, Falls Short of Expectations

The Trade Policy and Strategy Office (TPSO), Ministry of Commerce, revealed on Friday that Thailand’s consumer price index (CPI) or inflation figures for June increased by 0.62% YoY to 108.50, while the figure decreased by 0.31% compared to the level seen in May.

This figure fell short of the 1.12% forecast in a Reuters poll and remains below the central bank’s target range of 1% to 3%.

The index registered a slowdown from 1.54% seen in the previous month, primarily attributed to a reduction in the Ft rate for electricity following the end of the low base effect from the preceding month. Additionally, the gradual rise in fresh vegetable prices played a role in this trend, as favorable weather conditions supported cultivation after the end of the hot weather period.

Core CPI for June increased by 0.36% YoY to 104.73, while the average figure for the first six months edged up by 0.41%.

The Bank of Thailand (BOT) anticipates that headline inflation will remain below the target range in the third quarter before reverting to within the range in the fourth quarter. The ongoing economic conditions and various factors influencing inflation dynamics will continue to shape the trajectory of price movements in the coming months.