Thailand July inflation falls to 1.95%, supporting steady interest rates

Thailand's consumer price index slowed to 1.95% year‑on‑year in July 2026, marking the third consecutive month of easing inflation. The drop from 2.42% in June was larger than economists' median Bloomberg forecast and was driven mainly by a sharp decline in domestic fuel prices amid lower global oil costs.

Core inflation edged up slightly to 1.34% from 1.23% in June, while the overall index fell 0.73% on a monthly basis. Bank of Thailand Governor Vitai Ratanakorn said the slowdown reinforces the central bank's view that interest rates can remain on hold, with the next policy decision scheduled for 26 August. The bank had previously projected inflation to stay below its 2.8% target for the year.