Thailand Inflation Slows to 1.95 Percent in July

The Ministry of Commerce reported that Thailand's consumer price index rose 1.95 percent year on year in July, marking a deceleration from the 2.42 percent increase recorded in June. This headline slowdown is attributed to a monthly decline in fuel prices, which were stabilized by government policy.

Despite the overall dip, domestic fuel costs linked to the Middle East conflict continued to push up food prices and transportation fares. Core inflation, which excludes volatile food and energy sectors, rose to 1.34 percent from 1.23 percent in June.

Nantapong Chiralerspong, director-general of the ministry's trade policy and strategy office, stated that the risk of stagflation remains low. This assessment is based on recovering private consumption and strengthening consumer confidence. The ministry maintains its annual consumer price index projection of 1.5 percent to 2.5 percent and expects headline inflation to remain positive through August.