Thailand’s headline consumer price index (CPI) rose 3.9% in October from a year earlier, driven by higher fuel prices, which accounted for 56% of inflation.
Reducing energy expenses is the top economic demand among consumers, according to the Trade Policy and Strategy Office (TPSO).
Higher vegetable prices, caused by flooding in key vegetable cultivation areas in October, also contributed to inflation. However, the impact was temporary, with fresh produce prices gradually returning to normal by the end of the month.
Although the October headline CPI marked the highest level in 45 months, since January 2023, it remains lower than levels recorded during the peak of energy price pressures at the beginning of the Russia-Ukraine war, said Nantapong Chiralerspong, director-general of the TPSO.
When the Russia-Ukraine war erupted in February 2022, headline CPI reached 5.28%, then fluctuated between 4.65% and 7.86% throughout the year.
The TPSO expects headline inflation to remain positive in November. Factors to watch include persistently high global energy prices, rising costs of prepared meals and transport, and weather conditions that may influence prices of certain agricultural products.
Government initiatives targeting energy costs, price monitoring by the Commerce Ministry, and the gradual easing of flooding are expected to help mitigate price pressures and lessen the cost-of-living burden on households.
The ministry maintained its headline inflation projection for 2026 at 1.8-2.2%, with a midpoint of 2%.
The TPSO also conducted a nationwide public opinion survey of 5,553 respondents during Oct 5-26, finding that fuel price reductions were their top demand, followed by lower electricity bills.
Respondents also want the government to help reduce daily expenses through a co-payment scheme and price reductions on essential consumer goods.
Reports of stockpiling essential items in some countries prompted similar behaviour among Thai consumers. Wattanasak Sur-iam, director-general of the Department of Internal Trade, said retailers and wholesalers noted a 5-20% increase in sales of key items such as rice, dairy products and bottled water during the final week of October.
He also attributed the increase to end-of-month shopping, as salaries and state welfare allowances are disbursed during this period.
Mr Wattanasak emphasised that suppliers, retailers and wholesalers have sufficient stock to meet consumer demand.