Thailand's headline inflation is likely to be lower than projected this year as global oil prices decline, says the regulator.However, domestic goods prices are expected to continue rising, according to executives at the Bank of Thailand.
Speaking at the Monetary Policy Forum on Wednesday, Don Nakornthab, assistant governor for monetary policy at the central bank, said headline inflation for 2026 should come in below the regulator's previous forecast of 2.8%, primarily due to lower oil prices in both global and domestic markets.
According to the central bank, global oil prices have fallen back to pre-war levels, declining from an average of US$65 per barrel to $64 per barrel as of July 6.
In Thailand, the Oil Fuel Fund Board announced reductions in retail fuel prices, effective on Wednesday. Diesel prices were cut by 2.56 baht per litre, while all grades of gasoline were reduced by 2.51 baht per litre.
Although domestic fuel prices have begun to decline, the pass-through of lower energy costs to consumer prices has yet to be fully realised. As a result, goods prices are expected to continue rising for some time.
