Thailand: Decline in consumer prices deepens in January
Latest reading: Consumer prices were down 0.7% in annual terms in January, following a 0.3% fall in the prior month and further below the Bank of Thailand’s 1.0–3.0% target range.
Relative to the prior month’s figures, there were reduced price pressures for food and beverages (+0.9% on a year-on-year basis vs +1.5% in December), housing and utilities (-1.0% vs -0.6% in December), transportation and communication (-3.0% vs -2.9% in December) and recreation and education (+0.7% vs +1.0% in December).
Meanwhile, core consumer prices rose 0.6% in annual terms in January, stable from the previous month’s reading.
Finally, consumer prices declined 0.28% in January in month-on-month terms, following a 0.04% rise in the prior month.
Panelist insight: EIU analysts said:
“We expect the CPI to emerge from deflation by the end of the first quarter of 2026. However, the subsequent rebound will be soft, partially reflecting lingering political uncertainty, which will prevent a strong resurgence in consumer and business confidence. We forecast that annual average CPI growth will remain modest at 0.6% year on year in 2026, below the BOT’s target, giving the central bank plenty of room to cut interest rates further.”