Thai inflation rate hits 33-month low in November
Thailand’s headline inflation rate in November contracted for the second consecutive month to a 33-month low, the Trade Policy and Strategy Office said on Thursday.
The inflation index in November was 107.45, down 0.25 % compared with the previous month and 0.44% compared with the same month last year.
Inflation is now at its lowest since February 2021.
Headline inflation has risen just 1.41% this year (January to November).
TPSO director-general Poonpong Naiyanapakorn attributed the contraction to the government’s measure to cap prices of Gasohol 91 and diesel.
The drop was also driven by lower prices for basic foods including fresh pork and chicken and vegetable oil in November, he added.
However, Poonpong downplayed worries about deflation.
“The drop in inflation for two consecutive months sends no significant signal,” he said.
He predicted another fall in inflation this month thanks to government measures to reduce living costs that would bring lower prices for meat, electricity and fuel.
He said lower production costs would also help reduce the price of consumer goods, contributing to a lower inflation rate.
The Commerce Ministry forecasts headline inflation of 1 to 1.7% with a median rate of 1.35% in 2023.
It forecasts inflation of -0.3% to 1.7% next year.