Thai inflation negative for six straight months as full year forecast lowers
The central bank will review the policy on Wednesday, and most economists expect a further rate reduction
[BANGKOK] Thailand’s annual headline inflation rate was negative for a sixth straight month in September, driven by lower energy prices, the commerce ministry said on Monday (Oct 6) as it lowered its full year forecast to 0 per cent.
It was also the seventh consecutive month that the inflation rate was below the central bank’s target range of 1 to 3 per cent.
The headline consumer price index (CPI) dropped 0.72 per cent in September from a year earlier, deeper than the 0.6 per cent decline forecast in a Reuters poll, and followed a 0.79 per cent drop in August.
The core CPI, which excludes volatile energy and fresh food prices, rose 0.65 per cent in September from a year earlier, compared with a forecast increase of 0.76 per cent.
There are no signs of deflation because the core CPI was positive, the ministry said.
In the first nine months of 2025, annual headline inflation had an average decline of 0.01 per cent, with core inflation at 0.9 per cent, the ministry added.
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In August, the central bank cut its key interest rate by 25 basis points to a near three-year low of 1.5 per cent.
It will review the policy on Wednesday, and most economists expect a further rate reduction.
Thailand’s new government is in the middle of a programme aimed at boosting a sluggish economy hit by tariffs, political uncertainties and a soaring currency.
The commerce ministry said that one of the stimulus measures, a co-payment scheme that will subsidise up to 60 per cent of the costs of certain food and consumer goods, was unlikely to bring more inflationary pressures into the economy.
“The government’s co-payment policy will not help increase inflation much because it is short-term, but it will help with consumer confidence,” said Nantapong Chiralerspong, head of the commerce ministry’s Trade Policy and Strategy Office. REUTERS
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