Inflation in January was 1.32%, marking 10 consecutive months of growth. The rise was driven by higher fuel costs and food and beverage prices.
Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office (TPSO), said the consumer price index for January increased by 1.32% year-on-year, marking a second consecutive month of inflation exceeding 1%.
The main reason for fuel price inflation was the low base the previous year.
Prices in the food and beverage category rose due to higher costs for fresh fruit, cooking ingredients and non-alcoholic beverages.
For non-food and beverage categories, prices increased by 1% year-on-year, mainly attributed to higher fuel prices. Prices of electricity, housing rents and airfares also rose.
Other goods and services had a minimal impact on overall inflation.
He said core inflation, which excludes fresh food and energy, increased by 0.83% year-on-year in January, accelerating from 0.79% in December 2024.
Mr Poonpong said inflation in February should be on par with January's levels because domestic diesel prices are capped at 33 baht per litre, remaining higher than the same period last year.
The ongoing recovery of the tourism sector has driven up prices for related goods and services, particularly airfares.
In addition, certain crop prices remain high as production levels have not returned to normal following prolonged drought conditions, especially for coconuts, according to the TPSO.
"Inflation in February is likely to exceed 1%, and overall inflation for the first quarter is projected to rise by 1.1–1.2%," he said.
Mr Poonpong said some factors could reduce inflation, such as government measures to ease living costs. These include cutting household electricity bills and the stabilisation of liquefied petroleum gas prices, he said.
Fresh vegetable prices, which were high last year due to natural disasters, are now declining as favourable weather conditions improve agricultural yields and increase production in the market.
Large businesses are conducting marketing activities aligned with government stimulus measures.
The TPSO also updated the basket of goods and services used to calculate inflation, increasing the number of items to 464 from 430 in the 2019 base year, reflecting current consumption trends.
Some items were removed such as monthly newspaper and magazine subscriptions.
Newly added items include salmon, avocado, fermented fish sauce, electrolyte drinks, salad greens, smartwatches, electric chargers, dashboard cameras and car window film.
Air purifiers are expected to be included in the near future, according to the TPSO.