In October, Thailand's consumer price index (CPI) rose by 0.83% year-on-year, slightly exceeding the 0.61% increase noted in September, as disclosed by the Commerce Ministry. However, on a monthly basis, the CPI saw a decline of 0.06% in October compared to September, building on a prior 0.10% drop from August to September. The core CPI, which excludes specific food and energy prices, remained stable at a 0.77% increase year-on-year in October, consistent with the previous month. The Bank of Thailand maintains an inflation target band of 1% to 3% for the nation's CPI.
Despite this, Thailand's official inflation rate has remained below the central bank's target since May 2023, resulting in a growing divide between government officials advocating for increased stimulus and cautious central bankers. Reports indicate that Prime Minister Paetongtarn Shinawatra's administration is pursuing additional measures to invigorate Southeast Asia's second-largest economy.
In mid-October, the Bank of Thailand reduced its key interest rate from 2.50% to 2.25%. It also forecasted that the inflation rate could rise to 1.2% in 2025, aligning with the bank's target range. Moreover, the Bank of Thailand projected that the nation’s gross domestic product (GDP) would grow by 2.9% in 2025, a slight increase from the expected 2.7% rise in 2024.
However, officials and critics have raised concerns as neighboring ASEAN nations are reporting faster average economic growth rates. For 2024, ASEAN nations are anticipated to record an average economic growth rate of 4.7%, followed by a 4.8% increase in 2025, according to officials in September..