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5 Feb 2024

Thai Economy

Thailand sees negative inflation for fourth consecutive month in January 2024 but has not yet fallen into deflation (Business Brief No.4034 Full Ed.)


        Inflation has been negative for four consecutive months through January 2024, but Thailand has not yet entered deflation, according to KResearch.

        In January 2024, Thailand’s headline inflation was negative for the fourth straight month, reaching a 35-month low at -1.11 percent YoY. The negative inflation was driven by the government’s measures aimed at reducing energy prices and the ongoing decline in prices of fresh food products. However, the Thai economy is not yet considered to have entered a deflationary state.

        KResearch holds the view that headline inflation this year will be around 0.8 percent YoY, which is below the Bank of Thailand's inflation target of 1-3 percent. Given this, the central bank may consider cutting its policy rate in the second half of this year.

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Thai Economy