In October, Thailand's consumer price index (CPI) experienced a year-on-year increase of 0.83%, surpassing the 0.61% gain recorded in September, as reported by the Commerce Ministry on Wednesday. On a monthly basis, the CPI fell by 0.06% from September, following a 0.10% decrease in September compared to August, officials added.
The nation's core CPI, which excludes certain food and energy prices, showed a year-on-year increase of 0.77% in October, remaining steady from September. The Bank of Thailand maintains an inflation target band of 1% to 3% for the nation’s CPI. However, since May 2023, the official inflation rate has consistently remained below this target range, creating tensions between government officials advocating for more economic stimulus and inflation-conscious central bankers.
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% while forecasting that the national inflation rate would rise to 1.2% by 2025, aligning with the central bank's target range.
Furthermore, the Bank of Thailand anticipates a GDP growth rate of 2.9% for 2025, a slight increase from 2.7% in 2024. Despite these projections, officials and critics have pointed out that other ASEAN countries are experiencing higher growth rates. For 2024, the estimated average economic growth for ASEAN nations is expected to reach 4.7%, with a further increase to 4.8% in 2025, as reported by ASEAN officials in September..