BANGKOK (The Nation Thailand/Asia News Network): Thailand keeps its 2026 inflation forecast at 1.5–2.5%, with September prices expected to stay above year-earlier levels despite cheaper electricity.
Thailand’s headline inflation accelerated to 2.53% year on year in August 2026, reaching a three-month high as elevated fuel costs and widespread food price increases pushed up consumer prices.
Nantapong Chiralerspong, director-general of the Trade Policy and Strategy Office (TPSO) at the Ministry of Commerce, said the Consumer Price Index (CPI) stood at 102.67 in August. The annual inflation rate was up from 1.95% in July.
Nantapong attributed much of August’s increase to domestic fuel prices remaining above year-earlier levels because of the prolonged Middle East conflict and additional economic sanctions.
For January–August, the average CPI was 1.37% higher than in the same period of 2025.
Prepared meals and fresh food become more expensive
Prices in the food and non-alcoholic beverages category rose 2.99% year on year. Prepared meals recorded broad and relatively steep increases, with prices showing signs of remaining elevated.
More expensive dishes included ready-cooked side dishes, noodles, rice with curry, rice with stir-fried basil, and fried rice. White rice, eggs, fresh vegetables and fresh fruit also increased in price, alongside seasonings and non-alcoholic drinks such as drinking water, instant coffee, and hot and iced coffee.
Fresh chicken prices rose too. The TPSO linked part of the increase in fresh-food prices to stronger purchasing power under the “Thai Chuey Thai Plus” scheme.
However, some food items became cheaper, including sticky rice, dried or grated coconut, tamarind paste and meals ordered for delivery.
Fuel and fares lift non-food costs
The category covering goods and services other than food and beverages increased 2.23% from a year earlier, driven principally by fuel and public transport costs.
Higher fares affected school transport, inter-provincial vans, motorcycle taxis, minibuses and songthaews, and air-conditioned buses. House rents and cleaning supplies also became more expensive.
Prices fell for electricity, hotel rooms and clothing, as well as personal care products including body soap, shampoo, conditioner, perfume and nappies.
July inflation among the lowest in Asean
The latest international comparison covered July 2026, when Thailand’s headline inflation rate was 1.95% year on year. The TPSO said this was the 31st-lowest rate among 135 reporting economies.
Thailand also recorded the third-lowest rate among the eight reporting members of the Association of Southeast Asian Nations (ASEAN): Timor-Leste, Malaysia, Thailand, Singapore, Indonesia, Vietnam, the Philippines and Laos.
Lower electricity costs to ease September pressure
The TPSO expects headline inflation to remain positive in September, with four main factors putting upward pressure on prices:
Fuel: Domestic retail prices remain above year-earlier levels because of the continuing Middle East conflict, renewed military operations and additional economic sanctions.
Prepared meals: Price increases are spreading gradually across the market, with relatively substantial rises in the price of individual dishes.
Transport: Travel costs, particularly public bus fares, remain under pressure from fuel prices that are higher than a year earlier.
Fresh food: Stronger demand and weather-related supply disruption are expected to push up prices for fresh vegetables, fruit, eggs and chicken.
Working in the opposite direction, the average electricity rate for September–December has fallen to 3.86 baht per unit from 3.95 baht in the previous period. The figure is an average across customer categories, rather than a uniform rate charged to every household.
Personal care products are also expected to become cheaper as intense competition and continuing promotional campaigns by major operators restrain prices.
The Commerce Ministry has maintained its forecast for average headline inflation in 2026 at 1.5–2.5%, with a midpoint of 2.0%.
Meanwhile, Reuters reported that Thailand's foreign tourist arrivals dropped 3.12% year-on-year in the January 1 to September 5 period to 21.28 million visitors, the Tourism Ministry said on Monday.
Tourism, a key driver of Southeast Asia's second-largest economy, had a record of nearly 40 million visitors in 2019, before the pandemic.
