FX.co ★ Thailand Inflation Rate Cools in July

Thailand’s annual inflation rate eased to 1.95% in July 2026, down from 2.42% in June and below market expectations of 2.55%. The figure remained within the Bank of Thailand’s 1%–3% target range. According to Nantapong Chiralerspong, director-general of the Commerce Ministry, the slowdown was driven primarily by a sharp drop in domestic fuel prices, reflecting lower global oil prices.

Thailand has been particularly exposed to energy-price shocks because of its heavy reliance on imported crude oil. Earlier this year, higher energy costs had pushed inflation higher, following a year-long period of deflation.

In contrast to the headline figure, core inflation—which excludes volatile energy and fresh food prices—rose to 1.34% in July from 1.23% in June, largely due to increased input costs for personal-care products and prepared foods.

On a monthly basis, consumer prices fell 0.73% in July, after a 0.34% decline in June. Looking ahead, the Commerce Ministry expects headline inflation to pick up in August and to average 2.09% in the third quarter.