Stock Dimension – Bank of Thailand Points out the risk that the Thai economy will enter a state of deflation. Still at a low level Even though inflation this year hits 0%
Mr. Surat Thanboon, Senior Director Monetary Policy Department The Bank of Thailand (BoT) or Bank of Thailand said that the BoT has estimated that general inflation (CPI) in 2025 will be at 0.0%, in 2026 at 0.5% and in 2017 at 1%. It is expected that general inflation will be at 0.0%. It will return to positive in the 2nd quarter of 2026 and return to the lower bound of the monetary policy target of 1-3% in the 70s.
Products subject to inflation
including competition in product prices It is considered one of the factors that pressures Thai inflation to remain low continuously. Especially the price of products imported from China. This is lower than the average price of imported products from all countries, such as cosmetics, vegetables and fruits amidst high levels of price competition.
Deflation risk at a low level
Mr. Surat added that For risks to the Thai economy will enter a state of deflation It can be considered that it is still at a low level due to 3 important reasons.
1. The current low inflation rate This is a result of product prices decreasing in only some categories, such as energy and fresh food (vegetables and fruits). At this time, prices of other product groups It has not decreased continuously and on a large scale.
2. Price pressure indicators That reflects the trend of inflation remaining at a level similar to the past.
3. Medium-term inflation expectations remain anchored in the target range of 1-3%.
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