Thailand's annual consumer price increase accelerated from 1.95 per cent in July to 2.53 per cent in August. Fuel, prepared meals and fresh food became more expensive. Core inflation, excluding energy and fresh food, reached 1.44 per cent. Despite the acceleration, the commerce ministry kept its forecast for average inflation this year at 1.5–2.5 per cent.
Thailand's consumer prices rose 2.53 per cent in August compared with a year earlier, according to the commerce ministry's release. The annual increase had been 1.95 per cent in July. Prices also rose 0.56 per cent over the month. Core inflation, which excludes energy and fresh food, reached 1.44 per cent. Average inflation over the first eight months was 1.37 per cent.[1], [2]
Domestic fuel prices, still elevated compared with a year earlier, were the main driver of the increase. The higher fuel prices were attributed to the Middle East conflict, alongside sanctions and military operations in the region. Food prices also rose across a broad range of products. Prepared meals became more expensive, as did fresh foods including eggs, fresh chicken, vegetables and fruit.[1]
The commerce ministry retained its forecast for average inflation over the full year at 1.5–2.5 per cent. Alongside that annual range, it envisages a higher rate in the final quarter. The ministry expects inflation to reach about 2.7 per cent in that quarter if tensions in the Middle East persist, making the outlook conditional on the continuation of those tensions.[1], [2]
