Inflation rose to 0.83% YoY in October 2024 and is expected to reach 1.2% YoY in 4Q-2024

• Thailand’s headline inflation accelerated to 0.83%YoY in October 2024, in line with expectations, and core inflation increased to 0.77%YoY. This uptick was primarily driven by higher energy prices, including electricity and retail diesel, compared to the figures seen in October 2023, coupled with rising prices of some fresh vegetables and fruits due to production loss caused by flooding.
• For the rest of 2024, domestic headline inflation is expected to rise further, driving the average inflation rate to1.2%YoY in 4Q-2024. This is attributed to the following factors:

1) The low base of electricity and retail diesel prices in 4Q-2023 due to the government’s measures to alleviate the cost of living;
2) Persistently high prices of fresh vegetables and fruits due to the impact of flooding;
3) Anticipated price hikes for goods and services in 4Q-2024 during the high tourism season.

• KResearch maintains its projection for full-year 2024 headline inflation at 0.5%YoY.

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