Inflation in Thailand: August 2025 — Key Figures and Outlook

In August 2025, Thailand recorded negative inflation: the Consumer Price Index (CPI) fell by 0.79% year-on-year. On a monthly basis, the decline was around 0.01%, while overall growth for January–August stood at just 0.08%.

What drives these numbers

The main factors behind the drop are food and energy prices. Fruits and vegetables became cheaper thanks to favorable weather and good harvests, while fuel and electricity prices have also decreased or are being actively controlled by the government.

At the same time, Core CPI (excluding volatile categories such as fresh food and fuel) rose by 0.81% year-on-year in August, with an average increase of around 0.94% for January–August. This shows that underlying inflation is still experiencing moderate growth.

What it means in practice

Such low — and in fact near-zero — inflation is a major advantage for both the economy and investments:

• For investors: Rental yields from real estate (for example, 7–10% annually) are not eroded by price growth. Real returns remain stable.

• For consumers: Price stability is tangible, as increases in goods and services are offset by lower costs in key categories.

Forecasts and expectations

Thailand’s Ministry of Commerce projects inflation for the whole of 2025 to remain within 0–1%, with a median of around 0.5%.

It is also noted that deflation does not pose a threat to the economy in terms of consumer demand. The decline in prices is not driven by falling demand, but rather by external and seasonal factors.

Let's sum it up