The consumer price index, which gauges inflation, continues to slide, falling 1.05% year-on-year in July and contracting for the seventh month this year, according to the Commerce Ministry.
Somkiat Triratpan, director of the Office of Trade Policy and Strategy, said the index of consumer prices based on 450 products and services stood at 106.57 points at the end of July, down 0.07% from June.
The contraction in July, followed falls of 1.07% in June, 1.27% in May, 1.04% in April, 0.57% in March, 0.52% in February and 0.41% in January.
As a result, inflation for the first seven months of 2015 was 0.85% below the same period of last year.
Mr Somkiat said the July contraction was the result of the non-food and beverage sector index falling by 2.22%. The food and non-alcoholic beverage index rose by 1.10%.
He said it was likely that inflation in the third quarter would contract by 0.3% to 0.5%.
The ministry predicted a more stable oil price and foreign exchange rate over the next two months, allowing inflation to resume positive growth in the final quarter of 2015.
However, the ministry still needs to review its earlier projection of an overall inflation rate for 2015 of 0.6% to 1.3%, taking into account the global oil price and the value of the baht against the US dollar.