Azernews.Az

By Alimat Aliyeva

Thailand’s consumer prices increased in July, driven mainly by higher domestic fuel costs, which pushed up transportation expenses and contributed to rising food prices, according to official data released on Wednesday, AzerNEWS reports, citing foreign media.

The country’s Consumer Price Index (CPI) rose 1.95% year on year in July, slowing from the 2.42% increase recorded in June, the Ministry of Commerce reported.

Officials said the moderation in inflation was partly due to a monthly decline in domestic fuel prices. By the end of July, fuel costs had stabilized thanks to government support measures aimed at limiting the impact of global energy market volatility.

Meanwhile, core inflation, which excludes volatile food and energy prices, accelerated slightly, rising 1.34% annually in July compared with 1.23% in June.

According to Nantapong Chiralerspong, director-general of the ministry’s Trade Policy and Strategy Office, the risk of stagflation remains limited due to easing overall inflation, a recovery in private consumption, and improving consumer confidence.

During the first seven months of 2026, Thailand’s headline CPI increased by 1.21% compared with the same period a year earlier.

Looking ahead, the ministry expects inflation to remain positive in August, as retail fuel prices continue to stay above last year’s levels amid ongoing geopolitical tensions. Higher prices for prepared meals, cooking ingredients, travel services, and some fresh vegetables are also expected to contribute to inflationary pressure.

Officials added that weather risks linked to the El Niño phenomenon could further affect agricultural production and food prices. Despite these challenges, Thailand’s Ministry of Commerce kept its annual inflation forecast unchanged at 1.5%–2.5%.

Economists note that Thailand is trying to balance price stability with economic growth, as tourism recovery and domestic spending remain key drivers of the country’s economic outlook.