April’s headline inflation falls 0.22% – first decrease in 13 months
Thailand’s April inflation drops 0.22% YoY—first fall in 13 months—thanks to lower oil prices, mild weather, and cost-of-living measures.
Headline inflation in April declined year-on-year by 0.22%, marking the first drop in 13 months. The Trade Policy and Strategy Office (TPSO) attributed the decline to falling oil prices and government measures to ease the cost of living.
Consumer Price Index Falls to 100.14 in April
TPSO Director-General Poonpong Naiyanapakorn announced on Tuesday that the Consumer Price Index (CPI) for April stood at 100.14, down from 100.36 in April 2024. This resulted in a year-on-year decline in headline inflation by 0.22%.
Lower Energy Costs and Milder Weather Drive Inflation Down
The key drivers behind the decrease were lower petrol prices and reduced electricity fees, following the global downward trend in oil prices. Government interventions to curb the cost of living further contributed to the decline.
Poonpong noted that the milder summer this year also led to lower prices of vegetables and chicken eggs, easing inflationary pressures in the food sector.
Some Food Prices Rise, But Impact on CPI Remains Limited
While prices rose in certain food categories such as pork, instant meals, and seasonings, their impact on the overall CPI was minimal, Poonpong added.
Month-on-month, headline inflation dropped 0.21% from March's index of 100.35.
January–April Headline Inflation Rises 0.75% Year-on-Year
Despite April’s decrease, average headline inflation from January to April rose 0.75% compared to the same period last year.
The price index for non-food and non-beverage goods fell by 1.45%, driven by lower costs for energy, personal care items (such as soap and shampoo), and cleaning products (including detergent, dishwashing liquid, and floor cleaners). Apparel prices also fell.
Food and Drink Prices Rise 1.63%, Excluding Veg and Eggs
Excluding vegetables and chicken eggs, prices in the food and drink category increased by 1.63%. Notable increases were seen in meat, poultry, and ready-to-eat meals.
Core Inflation Rises 0.98% Year-on-Year
The core inflation rate, which excludes volatile energy and food prices, rose to 101.28, an increase of 0.98% year-on-year and 0.16% from March's 101.12.
Outlook: May Inflation Expected to Drop Further
Poonpong forecasted that May’s headline inflation is likely to decline for a second consecutive month. Contributing factors include continued drops in oil prices, ongoing reductions in electricity rates, and an expected decrease in vegetable prices, all of which are expected to drive the CPI lower.
