Inflation as measured by the headline consumer price index (CPI) fell 0.77% in February from a year earlier, versus a 1.11% year-on-year drop the previous month, the Commerce Ministry said on Tuesday.
The figure compared with a forecast fall of 0.8% for February in a Reuters poll. The core CPI increased 0.43% year-on-year in February, versus a forecast rise of 0.5%. It was the fifth straight month that inflation has fallen.
The price decline was driven by lower prices of fresh food and meat from market supply, Poonpong Naiyanapakorn, the Director of Trade Policy and Strategy Office, told a briefing.
Electricity, diesel and fuel prices were also lower due to government subsidies, he said, adding that March inflation is expected to continue a downwards trend.
In the January-February period, the headline CPI dropped 0.94% year-on-year, while the core CPI rose 0.47%. The commerce ministry predicts headline inflation for 2024 will be between -0.3% and +1.7%, with a midpoint of 0.7%. This rate aligns with the current economic situation, it said.