According to the Ministry of Commerce, the headline Consumer Price Index (CPI) dropped by 0.76% year-on-year to 100 in October, marking the seventh consecutive month of decline. Nantapong Chiralerspong, Director-General of the Ministry’s Trade Policy and Strategy Office (TPSO), credited this ongoing decrease to government efforts to ease living costs, reductions in energy prices, and lower prices for essential goods such as pork, chicken eggs, fresh vegetables, and fruits.
For November, inflation is expected to continue its downward trend, influenced by significantly lower Dubai crude oil prices compared to the previous year, along with ongoing government measures to reduce living expenses, lower prices of produce, and decreased hotel rates aligned with the government’s domestic tourism stimulus initiatives.
Nantapong noted that while overall inflation for the year might fall below zero percent, the ‘Khon La Khrueng Plus’ co-payment scheme could help gently boost inflation. He emphasized the importance of monitoring the impact of household debt relief, as a substantial reduction in debt levels might lead to a rise in inflation.
The official also clarified that the seven-month streak of falling inflation should not be mistaken for deflation, as core inflation has actually increased. He pointed out that there are no indications of diminished purchasing power, citing that the measures to lower living costs and the co-payment scheme have supported demand.
While low inflation benefits consumers by reducing expenses, Nantapong highlighted that for the Thai economy to experience stronger growth in the long term, a higher inflation rate is desirable.