Thailand's consumer price index dips in July

August 7, 2020

Thailand's Ministry of Commerce Thursday released a report indicating that the headline consumer price index (CPI) fell to 0.98 percent in July from a year earlier as food prices increased and domestic activity had resumed after the easing of COVID-19 restrictions.

The core CPI index rose 0.39 percent in July from a year earlier, compared with a forecast of 0.0 percent, and June's 0.05 percent drop, said Pimchanok Vonkorpon, director-general of the Ministry's Trade Policy and Strategy Office, explaining that all indexes pointed to an economic recovery.

The report also said that in January to July, the headline CPI declined 1.11 percent from a year earlier while the core CPI rose 0.34 percent.

Thailand has until now lifted nearly all of the COVID-19 restriction measures as the country is inching toward 80 days free from community transmission.

However, the Thai government has yet lifted its ban on inbound travelers for fear a second wave of infections may occur in the country.

At the same time, the Thai central bank on Wednesday, held its key interest rate steady at a record of 0.50 percent, saying the economy would gradually recover and headline inflation should return to its 1 percent to 3 percent target next year.