Thai Inflation Hits 1.95% in July, Driven by Fuel and Food Prices

Thailand's headline inflation increased for the fourth consecutive month in July 2026, rising 1.95% year-on-year, according to the Trade Policy and Strategy Office (TPSO). The Consumer Price Index (CPI) stood at 102.10 in July, showing a continued annual increase, though the pace of acceleration has begun to slow. Average inflation for the first seven months of 2026 stood at 1.21%. The primary drivers for this inflationary pressure were sustained higher fuel prices, influenced by prolonged tensions in the Middle East, which also contributed to increased public transport fares. Prices of prepared foods continued their upward trend, while fresh vegetable prices saw an increase due to the impact of a weakening El Niño pattern and a low price base from the previous year. The non-food and beverage category rose by 1.88%, led by higher domestic fuel prices, public transport costs, housing rents, and household cleaning products. Transport-related costs that saw increases included school transport services, interprovincial van fares, international airfares, motorcycle taxi fares, air-conditioned buses, and local public transport services. Conversely, some items recorded price declines, including electricity bills, hotel accommodation, personal care products such as shampoo and conditioner, cosmetics, and certain clothing categories. The Commerce Ministry anticipates that inflation will continue to rise gradually in the coming months but maintains its full-year forecast at 1.5%–2.5%. Officials highlighted that oil price movements will remain a key determinant, with lower energy prices potentially easing inflationary pressures.