2019 Summary: Inflation in Thailand Reached 0.71%

In December 2019, Thailand recorded a five-month high in consumer price growth, rising by 0.87% year-on-year. In November, the figure stood at 0.21%, while a month earlier it was 0.11%.

The increase in food and beverage prices had a significant impact on inflation in December, rising by 1.7%. Rice, flour, and flour-based products increased by 8.8% compared with the same month of the previous year. Meat, poultry, and fish became 2.2% more expensive, while eggs and dairy products rose by 2.3%.
Thailand's Ministry of Commerce attributes the increase in food prices to higher demand during the New Year holiday period. The 1.9% increase in the price of non-alcoholic beverages was associated with higher taxes on sugar-sweetened drinks.
At the same time, it is important to note that inflation is calculated based on 422 items. Of these, only 25 items became more expensive in December, including rice, pork, fresh fruit, and electricity. Another 189 items remained at the same price level, while the prices of 108 items decreased. These included oranges, chili, and cabbage. On a month-on-month basis, compared with November, inflation was at its lowest level, with prices increasing by 0.1%.
For the whole of 2019, inflation amounted to 0.71%. This figure matched the lower end of the Ministry of Commerce's forecast range of 0.7–1%. Consumer prices excluding food and energy (Core CPI) increased by 0.49% year-on-year in December and by 0.03% month-on-month. This indicator increased by 0.5% over the year.
According to the Ministry of Commerce's forecasts, inflation in the coming year is expected to range from 0.4% to 1.2%. The forecast, which is wider than the range for 2019, is based on GDP growth of 2.7–3.7%, an oil price of $58–68 per barrel, and an exchange rate of 30–32 baht per US dollar.

According to experts, the higher inflation rate in December reflects an economic recovery and improved consumer sentiment driven by tourism and the New Year holiday season.
In 2020, another factor could affect the inflation rate: the risk of drought, which could lead to higher food prices, particularly for vegetables and rice.

This type of inflation makes guaranteed income programs offered by Phuket developers even more attractive. You can learn more about guaranteed income programs on the island by contacting our managers using the details below:

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