The Commerce Ministry attributed the extended period of negative inflation mainly to lower energy prices, including fuel and electricity, and government measures aimed at reducing the cost of living for households. These factors have helped keep overall consumer prices well below the Bank of Thailand’s target range of 1%–3%.
Despite the headline CPI contraction, core inflation — which excludes volatile energy and fresh food costs — remained positive, indicating that underlying price pressures in other sectors persist. Policymakers have suggested that headline inflation could remain in negative territory through the first quarter before turning positive later in the year as seasonal food prices rise.
Economists and officials are closely watching the trend, as prolonged negative inflation can signal weak demand and pose challenges for economic growth. The central bank may consider monetary policy adjustments if disinflationary pressures deepen further. News as reported
