January Inflation Drops 0.66%, Projected to Turn Positive in Q2 with Vegetable and Vehicle Price Increases

Nattiya Sujinda, Deputy Director of the Trade Policy and Strategy Office at the Ministry of Commerce, reported that the consumer price index for January 2024 was 99.91, down 0.66% compared to the same period last year. The decline is primarily attributed to non-food and beverage categories dropping 1.66%, while food and non-alcoholic beverage prices increased by 0.92%. January marks the 10th consecutive month of negative inflation, largely due to reduced energy, fuel, and electricity prices. The ministry predicts inflation will remain negative in Q1 at -0.43% but will turn positive in Q2, with projected growth of 0.38% in Q2, 0.90% in Q3, and 1.15% in Q4. The anticipated price increases are expected due to potential drought affecting fresh produce prices, vehicle price adjustments from new excise taxes, and possible geopolitical impacts on oil prices.