The headline inflation decreased by 0.47% (YoY) because of a decrease in the prices of fresh food, especially meat and fresh vegetables.
Poonpong Naiyanapakorn, the director of Trade Policy and Strategy Office, said that the Consumer Price Index (CPI) in March2024 was 107.25 comparing to March 2023(107.76), the headline inflation decreased by 0.47% (YoY) because a decrease in the prices of fresh food, especially meat and fresh vegetables, caused by an increase in the market supply.
Moreover, the high base price in March 2023 has contributed to the decrease in the inflation rate.
Due to the government measures, the prices of electricity and diesel fuel were also lower compared to the same period in 2023.
The headline inflation rate in March 2024, which decreased by 0.47% (YoY), wascontributed by the prices of goods and services, food and non-alcoholic beverages category decreased by 0.57% (YoY), driven by falling prices
Non – food and beverages category decreased by 0.40% (YoY), primarily due to the ongoing government measures that lowered the prices of electricity and diesel fuel compared to March 2023.
For core inflation, excluding fresh food and energy, it increased by 0.37% (YoY) with a slight decrease from 0.43% (YoY) in February2024.
The average consumer price index over the first quarter (January – March) 2024decreased by 0.79% (YoY) compared to the same period in 2023, and by 0.21% (QoQ)compared to the fourth quarter (October – December) 2023.
As for the second quarter 2024, the headline inflation is expected to increase, mainly due to the following major factors.
- First, the price of crude oil in the global market tends to increase.
- Second, the exchange rate tends to depreciate, falling lower than the first quarter 2024 and the same period in 2023.
- Third, the lower base price of electricity resulted from the government measures in previous year, particularly in May 2023, will contribute to an increase in the inflation rate.
- Fourth, the continuous expansion of tourism will result in higher prices of related goods and services. Nonetheless, there are some other factors possibly maintaining low inflation rate.
For instance, the high base prices of pork and fresh vegetables, combined with the gradual trend in price rise this year due a large amount of supply in the market, will result in a low inflation rate.
