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

Thailand's producer price index jumped 9.1 percent year-on-year in August 2025, reaching 115.4, the Office of Trade and Economic Policy Strategy announced. Nanthapong Chiralertphong, the office's director, attributed the increase to low baseline prices from the prior year, elevated global energy prices, and a weaker baht. Agricultural and fisheries products rose 8.3 percent, led by rice (from low prior-year prices), fresh cassava (tight market supply and reduced cross-border imports), rubber (driven by Middle East tensions boosting demand for substitute raw materials), and fresh palm oil (tracking crude palm oil prices amid high global energy costs). Prices fell for fruits including durian, pineapple, and coconut due to weak export demand, and for live pigs, broiler chickens, and vannamei shrimp as consumption declined amid broader economic weakness. Mining products surged 23.9 percent, with crude oil and natural gas tracking higher global energy prices and the Strait of Hormuz shipping constraints, while metal ores rose on world market prices, supply concerns, and industrial demand for electronics. Industrial products climbed 6.9 percent, led by petroleum refining products following crude oil prices, rubber and plastics reflecting higher raw material costs and tight supply amid unfavorable weather, computer and electronics products responding to global industrial demand, and gold tracking safe-haven demand amid global economic uncertainty. The office forecasts September 2025 growth will accelerate from a low year-ago base, with energy prices expected to remain volatile and production costs staying elevated. However, US tariff measures and a stronger baht may pressure export-oriented manufacturers to delay price increases despite higher overall costs, to maintain competitiveness and order volumes.