The trend of deflation in Thailand has continued for the eighth month.

In November, Thailand experienced deflation for the eighth consecutive month, which may bolster hopes for further interest rate cuts in the market. Government data released on Wednesday showed that the Consumer Price Index in November decreased by 0.49% year-on-year. This decline was better than the 0.76% drop recorded in October and the 0.58% drop expected by economists in a media survey, but deflationary pressure continues. Core inflation, which excludes volatile prices of fresh food and energy, rose by 0.66% year-on-year, compared to a 0.61% increase in October and the predicted increase of 0.57% from the survey mentioned above. The Bank of Thailand has attributed weak CPI to supply-side factors and subsidy effects, but some economists argue that consumer demand remains weak. The central bank has stated that it sees limited deflationary risks, as prices for most goods and services continue to rise or remain stable. The Bank of Thailand expects overall inflation to remain flat this year, rising to 0.5% in 2026, and gradually returning to the target range of 1% to 3% in early 2027.