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Thailand Inflation Rate Is Expected To Remain Between 1-2% for 2023
Published: August 8, 2023 at 8:24 pm
Thailand continues to buck the inflation trend among ASEAN nations. Poonpong Naiyanapakorn, director of the Commerce Ministry’s Trade Policy and Strategy Office, confirms that the country’s inflation rate is the most modest within the group. Preliminary data suggests that this stable rate aligns with the globally receding inflation.
Here’s a snapshot of factors influencing this trend:
1. Food and Beverage: July witnessed a 1.49% annual increase in food and non-alcoholic beverage prices. However, some farm products like eggs, rambutan, and citrus experienced price hikes, attributable to climate change affecting their yields.
2. Non-Food Items: Items such as electrical appliances, televisions, and cell phones witnessed a price decline of 0.38% annually. In contrast, necessities like electricity, public transportation, and personal services, like hairdressing, marked a price increase.
3. Consumer Price Index (CPI): The CPI, an indicator of inflation, was recorded at 107.82 in July. This is slightly higher than 107.41 from the previous year, marking a 0.38% annual increase. A month-over-month comparison, however, shows a minor decline of 0.01% in July.
4. Consumer Confidence: Amid political unrest and fuel price surges, the consumer confidence index dipped to 53.3 in July from 56.1 in June. This registers as the eighth consecutive monthly decline. Despite this, a sense of optimism remains, as many Thais still trust in the economy’s resilience, spurred by the ongoing rebound in sectors like tourism.
While the global and regional economic landscapes remain fluid, Thailand’s low inflation rate stands as a beacon of stability in the ASEAN region. The primary factors contributing to this status are the declining prices in significant sectors. As Thailand navigates through 2023, the Kingdom’s focus on economic and tourism recovery will be the guide for continued resilience.