Thailand inflation dips below zero but economists see little cause for deflation worries
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Thailand's inflation rate dropped below 0% in October and November, raising some concerns about deflation, but economists say there are no significant signs to worry yet.
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The declines were mainly due to government subsidies reducing fuel and electricity costs. Core inflation barely changed and economic growth forecasts remain positive.
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Household debt continued creeping up and economic expansion over the past 3 years was lower than previously. Some economists say weak consumer spending shows public remains cautious.
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Inflation is expected to keep decelerating in 2023 due to ongoing government aid measures, limited price hikes for key goods, and a potential global slowdown.
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Risk factors that could impact future inflation include geopolitical conflicts affecting commodity prices and currency fluctuations based on Thailand’s monetary policy and economic stimulus measures.