Thailand records 2.53% inflation as consumer prices increase

The Ministry of Commerce’s Trade Policy and Strategy Office (TPSO) reported uneven conditions in Thailand’s regional economies in its August 2026 review.

Rising living costs remained a key source of pressure and consumer confidence stayed weak, although business formation and tourism continued to grow well in some areas.

TPSO data showed that the headline consumer price index (CPI) rose 2.53% in August from a year earlier, with increases in every region.

The South recorded the highest inflation rate at 2.85%, followed by the Central region at 2.81%, the Northeast at 2.43%, Bangkok and surrounding provinces at 2.38%, and the North at 2.21%, reflecting widespread price pressures.

A key factor was the 2.99% increase in prices of food and non-alcoholic beverages, compared with 2.23% for other categories excluding food and beverages.

Among agricultural products, fresh vegetable prices rose 7.42%, while prices for eggs and dairy products increased 5.16%.

TPSO assessed that prices of fresh vegetables, fresh fruit, chicken eggs and fresh chicken were still likely to increase because of rising demand and the effects of weather on supply.

The trend was consistent with global food prices.

TPSO cited the Food and Agriculture Organization of the United Nations (FAO), which reported that its Food Price Index rose 2.5% year on year in August.

Its Vegetable Oil Price Index stood at 196.9 points, the highest since June 2022, amid hot, dry weather and the effects of El Niño on production in Southeast Asia.

Inflation caused by heat is referred to as heatflation.

The consumer confidence index fell from the previous month to 49.5 in August, remaining in the range indicating a lack of confidence.

The Northeast was the only region with a reading indicating confidence, at 52.0. The Central region stood at 47.3, Bangkok and surrounding provinces at 49.2, the North at 49.4, and the South at 49.9.

Northeast leads business formation with 36.3% growth

New business registrations nationwide totalled 7,913 in August, up 3.6% from a year earlier.

The Northeast recorded the fastest growth at 36.3%, with 1,037 new legal entities, followed by the North with growth of 28.4% and the Central region at 1.0%.

Registrations fell 3.7% in Bangkok and surrounding provinces and 11.5% in the South.

However, registered business dissolutions also increased, reaching 2,244 nationwide, up 35.2%, with rises in every region.

The Central region recorded the largest increase at 69.1%.

The increases elsewhere were 27.9% in the South, 25.6% in Bangkok and surrounding provinces, 24.1% in the Northeast, and 35.1% in the North.

Business sales, for which the latest data were from June 2026, fell 0.2% nationwide.

The Central region recorded strong growth of 17.1%, while sales rose 3.1% in the Northeast, 1.2% in the South and 1.1% in the North.

Bangkok and surrounding provinces recorded a 5.0% decline.

Tourism recovery varies as the North records strong growth

Visitor revenue nationwide reached THB235.166 billion in July 2026, up 1.2% from a year earlier.

The North recorded the fastest growth at 14.8%, with revenue of THB17.985 billion, while the Northeast posted growth of 5.2% and revenue of THB10.44 billion.

The Central region generated visitor revenue of THB51.483 billion, up 0.7%, while Bangkok and surrounding provinces recorded THB73.438 billion, down 0.1%.

Revenue in the South stood at THB81.82 billion, down 0.4%, reflecting differences in the pace of tourism recovery between regions.

The report put nationwide farm income growth in June at 5.6%, with substantial differences between regions.

The South was reported to have the strongest regional growth at 4.5%, while farm incomes fell 5.1% in the Central region, 3.6% in the East, 9.3% in the West, 4.8% in the North and 2.8% in the Northeast.

Commerce Ministry steps up measures on living costs and farm incomes

The Ministry of Commerce is continuing measures to ease living costs amid rising prices.

The Department of Internal Trade is monitoring consumer goods and overseeing 66 goods and services on the controlled list to prevent opportunistic price increases.

The Department of Business Development organised the “Thais Help Thais x Local Low Cost” campaign from Saturday (August 1, 2026) to August 15 to reduce household living expenses.

In agriculture, the ministry is stepping up efforts to tackle surpluses and diversify markets, particularly for longan in the North.

It is monitoring production and purchasing while expanding markets for dried longan to India, Central Asia and the Middle East to reduce reliance on its main markets and stabilise prices.

In the South, farmers were linked with factories for the supply of 500,000 coconuts at purchase prices of about THB8-10 per coconut, to help farmers sell their produce and earn income.

Overall, the August report points to a regional economy experiencing an “uneven recovery”.

Some areas, particularly the Northeast and the North, show positive signs in business formation and tourism.

Persistently weak consumer confidence, higher living costs and weak farm incomes in many areas remain key challenges to economic recovery through the rest of the year.