Thailand’s headline inflation rose to 2.53% year-on-year in August 2026, exceeding the 2.43% median estimate from economists. This marks an acceleration from the 1.95% recorded in July and represents a three-month high.
The increase was driven primarily by rising costs for food, fuel, and transportation. Food and non-alcoholic beverage prices rose by nearly 3%, while non-food costs increased by 2.23%. The Ministry of Commerce noted that weather disruptions and Middle East tensions affecting oil prices have contributed to these hikes.
Despite the rise, the inflation rate remains within the Bank of Thailand’s target range of 1% to 3%. Bank of Thailand Governor Vitai Ratanakorn indicated that the central bank's primary economic concern is weakening growth rather than price pressures. Consequently, monetary policy is expected to remain accommodative, with the benchmark interest rate held at 1%.
Economic officials expect inflation to potentially accelerate further in the fourth quarter, reaching approximately 2.7%, as high oil and food prices persist.
Entities
Bank of Thailand · Ministry of Commerce · Nantapong Chiralerspong · Thailand · Vitai Ratanakorn