FX.co ★ Thailand Consumer Prices Fall for 2nd Month

In May 2025, Thailand experienced a year-on-year decrease in consumer prices by 0.57%, marking the second consecutive month of deflation. This decline follows a 0.22% reduction in April and was slightly less than the anticipated market forecast of a 0.83% decrease. The deflationary trend was observed across most sub-indexes, including housing and furnishings, which fell to -0.30% from -0.67% in April; medical and personal care, which dropped to -1.05% from -0.72%; transport, which decreased further to -3.38% from -2.97%; clothing and footwear, which declined to -0.91% from -0.56%; and other non-food and beverage categories, which fell to -1.51% from -1.45%. Conversely, the inflation rate for food and non-alcoholic beverages decreased to 0.89%, marking its lowest point in 11 months and down from 1.63% in April. On a monthly basis, the Consumer Price Index (CPI) experienced a rise of 0.26%, bouncing back from a 0.21% decline in the preceding period. Furthermore, annual core inflation increased to 1.09% from the previous 0.98%, failing to meet the market's expectation of a slight decrease to 0.95%. This represents the highest core inflation rate since June 2023.