The general inflation rate in Thailand for July 2024 has accelerated from the previous month to 0.83% YoY and 0.19% MoM, driven by key factors including:

  • The rising prices of fuel due to increases in global crude oil prices, while the domestic retail price of diesel remains capped at no more than 33 baht/liter, which is higher than the same period last year when it was capped at no more than 32 baht/liter.
  • Prices of food items, such as rice, fresh fruits, and ready-to-eat meals, remain higher than the same period last year, although fresh food prices have gradually decreased from the previous month as more produce enters the market.
  • Out of 430 items in the inflation basket, 269 items have seen price increases. Excluding fresh food and energy prices, the core inflation rate for July 2024 has risen to 0.52% YoY from 0.36% YoY in the previous month.

Looking ahead to the remainder of this year, it is expected that the general inflation rate in Thailand for August may decrease from July due to the high base effect in August 2023, influenced by elevated Dubai crude oil prices. However, it is anticipated that the general inflation rate will pick up again in Q4 2024, partly supported by tourism during the high season, along with a low base in Q4 2023. Overall, the inflation rate for Thailand in 2024 is projected to be 0.8%, with future inflation trends still dependent on global oil price movements and potential changes in government measures to stabilize domestic energy prices.

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