FX.co ★ Thailand Inflation Rate Returns Below 1%

Thailand witnessed a decline in its annual inflation rate to 0.84% in March 2025, down from 1.08% in February, and lower than the anticipated 1.09%. This rate fell beneath the central bank’s target range of 1% to 3%, after maintaining within this range for the past three months. The deflationary trend was evident across several subindexes. Notably, prices decreased in sectors including housing and furnishings (-0.63% compared to -0.52% in February), medical and personal care (-0.63% as opposed to -0.52%), and clothing and footwear (-0.43% compared to -0.32%). Furthermore, transport costs reduced by 0.41%, after a previous rise of 0.53%. Contrastingly, the inflation rate for food and non-alcoholic beverages, which holds the highest weight in the index, saw an acceleration to 2.35%, up from 2.03%. The core inflation rate on an annual basis, excluding volatile sectors such as food and energy, decelerated to 0.86% from February's 0.99%, falling short of the projected 1%. Month-over-month, the Consumer Price Index (CPI) experienced a decline of 0.2%, following a marginal decrease of 0.02% in the preceding month.