Consumer prices eased for the fourth consecutive month in September as energy and meat prices dropped.
The Commerce Ministry yesterday reported that headline inflation, based on 450 items, slowed to a nine-month low to 1.75% year-on-year.
In August, the rate rose by 2.09% after increases of 2.16% in July, 2.35% in June and 2.62% in May.
Core inflation, which excludes volatile food and energy prices, increased by 1.73% from a year earlier in September, down from 1.83% in the preceding month.
For the first nine months, inflation rose by 2.15%, while core inflation increased by 1.56%.
The latest core inflation figures remain within the Bank of Thailand's target range of 0.5-3%.
Commerce Ministry adviser Ampawon Pichalai said energy prices fell in line with lower global prices and the energy restructuring by the National Council for Peace and Order.
Meat prices also fell because of massive supply.
"Despite inflation easing for the fourth consecutive month in September, we are still confident this will not be a sign of deflation," Ms Ampawon said. "Overall domestic food prices remained on the rise in September by 3.85% year-on-year."
The ministry forecasts inflation in the fourth quarter to stay at about 2.10%, with the rate for the second half at 2.05%.
The private sector's cooperation to maintain product prices to ease the cost of living will also help rein in inflation. The ministry has set an inflation target of 2-2.8% this year.
Ms Ampawon said key factors that need close monitoring are the global oil price and the pace of the world's economic recovery.
The US's exit from quantitative easing and large asset purchases is also expected to hit gold and commodity prices and the foreign exchange, she said.
Increases in the prices of liquefied petroleum gas and compressed natural gas will also put slight pressure on the inflation rate.