Thailand Consumer Prices Fall for 4th Month

Consumer prices in Thailand fell by 0.70% year-on-year in July 2025, a steeper decline than the expected 0.45% drop and following a 0.25% decrease in June. This marked the fourth month of deflation, keeping inflation below the central bank’s 1%–3% target range. Despite the string of negative inflation readings, the Ministry of Commerce stated there were no signs of true deflation. A key factor behind was the decline in Dubai crude oil prices, following easing tensions in the Middle East after a ceasefire agreement. Other contributing factors included government measures to reduce living costs—such as cutting electricity rates from May to August—increased supplies of fresh vegetables, and promotional campaigns by large retailers aligned with the government’s stimulus efforts. Meanwhile, core consumer prices, rose 0.84% year-on-year, the slowest pace of growth in six months, slightly below the forecasted 0.90% and easing from a 1.06% gain in June.