Thailand Inflation Hits 3-Month High in August Driven by Fuel and Food Prices

Thailand's headline inflation rose 2.53% year-on-year in August, marking its fifth consecutive monthly increase and the highest rate in three months, driven mainly by higher fuel and food prices, according to the Ministry of Commerce. The Consumer Price Index (CPI) stood at 102.67 in August, while inflation for the first eight months of 2026 averaged 1.37%. Food and non-alcoholic beverages saw a 2.99% increase, primarily due to higher prices for prepared meals, rice, eggs, fresh vegetables, fruits, beverages, and cooking ingredients. Prepared food prices continued to rise broadly, while fresh food prices were impacted by stronger demand and weather-related supply disruptions. Non-food and beverage prices increased by 2.23%, with higher fuel costs, public transport fares, rents, and household cleaning products contributing to the rise. These increases were partially offset by lower electricity bills, hotel room rates, personal care products, and clothing. Core inflation, which excludes fresh food and energy, rose to 1.44% in August, up from 1.34% in July. For the first eight months of the year, core inflation averaged 0.94%. The Commerce Ministry expects inflation to remain positive in September, citing persistently higher fuel prices compared to the previous year, influenced by the prolonged conflict in the Middle East and additional economic sanctions. Food prices are also anticipated to stay under pressure, particularly for prepared meals, vegetables, fruits, eggs, and fresh chicken, due to strong demand and weather-induced supply disruptions. However, lower electricity prices are expected to help contain inflation. The electricity tariff for September–December 2026 has been reduced to 3.86 baht per unit from 3.95 baht previously. The ministry maintained its full-year 2026 inflation forecast at 1.5–2.5%, with a midpoint of 2.0%.