Inflation falls slightly for fourth consecutive month
Thailand’s inflation rate continued its downward trend in July, easing by 0.83%, marking the fourth consecutive month of deceleration, according to the Trade Policy and Strategy Office (TPSO), Commerce Ministry.
While overall inflation for the first seven months of 2024 is expected to be a modest 0.11%, the TPSO warns that fluctuations in oil, food and service prices will remain key drivers of consumer costs.
Average monthly household expenditure held steady at 18,130 baht in the first half of 2024, mirroring the previous year’s figure.
A breakdown of household expenses shows:
- Food and non-alcoholic beverages: Average expenditure decreased slightly to 7,536 baht per month, down 9 baht from the previous year, due to lower prices for meat, poultry, and seafood, particularly pork, mackerel, and white shrimp.
- Housing and furnishings: Expenditure remained stable at 375 baht per month, reflecting the diverse range of manufacturers, distributors, and distribution channels in this sector.
- Utilities: Average costs decreased by 14 baht to 4,003 baht per month, primarily due to reduced electricity prices resulting from government cost-of-living support measures.
- Healthcare and personal services: Spending increased by 5 baht to 987 baht per month, driven by higher costs for medical examinations, medicines, and personal care items.
- Transportation: Expenditure rose by 11 baht to 4,220 baht per month, largely due to increased public transport fares, especially for air travel and taxis.
- Education and entertainment: Costs increased by 4 baht to 766 baht per month, reflecting slight increases in both public and private sector tuition fees.
- Tobacco and alcoholic beverages: Spending rose by 3 baht to 244 baht per month, due to price increases for liquor and cigarettes.
Poonpong Naiyanapakorn, TPSO director-general, projected a slight increase in National Household Expenditure for 2024 compared to the previous year's average of 18,000 baht per month.
The data suggests that while there have been fluctuations in various expense categories, overall household expenditure has remained relatively stable. This stability is largely attributed to government measures supporting the cost of living, which have helped to mitigate the impact of inflation on Thai households.
As Thailand continues to navigate economic challenges, policymakers and businesses will be closely monitoring these trends to inform future decisions and strategies, he noted.
