The inflation rate in Thailand dropped to 0.30% in September from 0.88% in August due to lower energy and food prices. This decline is mainly attributed to increased supplies of pork and vegetables, leading to the first decrease in the prices of various food items and non-alcoholic drinks in 23 months. It is projected that Thailand will experience an inflation rate of 1.35% for the entire year, and further price reductions in food and energy could potentially result in negative inflation in the fourth quarter.
While food and drink prices decreased, non-food and drink items saw a 0.59% increase in prices. Despite these inflation fluctuations, Thailand’s economic recovery remains intact. However, inflation risks persist due to factors like the El Nino weather pattern, higher food prices, oil prices, rising wages, and government policies. It is important to note that Thailand’s overall financial system is strong, although there are concerns about high household debt. Recently, the Bank of Thailand unexpectedly raised key interest rates and revised growth forecasts for this year and 2024.
The governor emphasized the need to assess the country’s long-term growth capacity and highlighted the importance of improving the ease of doing business and reducing regulations to attract more investment. The central bank also stated that the depreciation of the baht aligns with regional trends.
READ MORE: https://bangkokone.news
