Thailand Records Continuous Deflation for the Tenth Consecutive Month in January

CryptoMotivator · 2026-02-14T02:18:35+00:00

Thailand faces deflationary pressure, with prices falling 0.66% compared to the previous period, resulting in ten consecutive months of decline. Although core inflation has increased by 0.6% year-over-year, the government is implementing stimulus policies, expecting a slight inflationary recovery in the second quarter.

CryptoMotivator

2026-02-14 02:18:35

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Thailand’s economy continues to face deflationary pressure, with the Consumer Price Index (CPI) recording a 0.66% decrease compared to the previous period, a contraction that negatively surprised analysts’ projections. Data released by the Ministry of Commerce revealed that the country has now experienced ten consecutive months of falling prices, the longest decline since the start of the global pandemic.

Economic Indicators Show Resilience in Specific Sectors

In the monthly analysis, prices fell by 0.28%, also below market expectations. However, when excluding the volatility of fuels and fresh produce, core inflation increased by 0.6% year-over-year, aligning with previously established projections. This scenario indicates that deflation is mainly concentrated in commodities and food sectors, while higher-value items maintain some price stability.

Government Bets on Stimulus Policies for Economic Rebound

Natiya Suchinda, representative of the Office of Trade Policy and Strategy, stated that Thailand’s Ministry of Commerce continues to support through direct subsidies on electricity and fuel. These measures aim to protect consumers’ purchasing power during the period of pressure on global oil prices. The authority projects that the deflationary environment will persist throughout the first quarter before a possible transition.

Outlook for Economic Recovery in the Coming Months

The forecast indicates a gradual shift toward “mild inflation growth” starting in the second quarter, when seasonal factors and the eventual recovery of energy prices may begin to manifest. For the fiscal year 2026, the government maintains its estimate that Thailand’s overall inflation will fluctuate between 0% and 1%, reflecting expectations of a moderate normalization of prices throughout the year.

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