• Thailand’s inflation in July 2026 slowed to 1.95 percent YoY, though cost pass-through to consumers continued to increase. The Energy Price Index rose 6.5 percent YoY, remaining the primary driver of higher inflation despite slowing for the second consecutive month.
• Cost pass-through to consumers has continued since February 2026, following heightened tensions in the Middle East. In particular, the Prepared Food Price Index accelerated further to 3.25 percent YoY. Meanwhile, core inflation in July 2026 increased to 1.34 percent YoY, a 38-month high.
• KResearch has lowered its forecast for Thailand’s headline inflation in 2026 to 2.3 percent, from its previous projection of 3.1 percent. However, it maintains the view that high cost pass-through into the inflation basket will persist for the rest of the year, causing inflation to accelerate from 1.2 percent YoY recorded in 7M26.
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