Thai Producer Price Index Jumps 9.1% on Energy, Raw Material Costs

Thailand's producer price index surged 9.1 percent year-on-year in August 2025, according to Nanthapongsiri Jiralertpong, director of the Office of Trade and Investment Policy Strategy. The index expanded across all product categories—agriculture and fisheries, mining, and industrial products—driven by low baseline prices from the previous year, elevated global energy prices, and a weaker baht.

The August index stood at 115.4, up 9.1 percent from August 2024. Agricultural and fishery products rose 8.3 percent, led by increases in paddy rice (from lower prior-year prices), cassava (tight supply due to reduced cross-border imports), rubber (driven by Middle East tensions boosting demand for substitute materials), and fresh palm oil (following crude palm oil price gains linked to global energy trends). Livestock and aquaculture prices fell due to weakening domestic consumption, as did fruits including durian, pineapple, and coconut owing to declining export demand.

Mining products jumped 23.9 percent on higher crude oil and natural gas prices tracking global energy trends, metal ores on tight supply and strong industrial electronics demand, and other mining outputs due to elevated energy-intensive production costs. Industrial products climbed 6.9 percent, driven by refined petroleum tracking crude oil moves, rubber and plastics from higher raw material costs and tight supply amid adverse weather, computer and electronics products responding to global industry demand, and gold reflecting safe-haven demand amid global economic uncertainty.

For September 2025, the index is forecast to expand at an even faster rate from a low prior-year base, with global energy prices expected to remain volatile and production costs staying elevated. However, U.S. tariff measures and a stronger baht may pressure exporters to delay price hikes despite higher input costs, to preserve competitiveness and maintain order volumes.