Headline inflation rose by 0.84% year-on-year in March, marking the 12th consecutive monthly uptick, according to the Commerce Ministry.
The increase was driven by rising prices of non-alcoholic beverages, meat, and ready-to-eat meals, along with increases in diesel fuel and housing rental costs. Other goods and services had a minimal impact on inflation.
Poonpong Naiyanapakorn, director-general of the Trade Policy and Strategy Office (TPSO), said the consumer price index in March was 100.35.
He said the headline inflation rate in the second quarter is expected to decrease from the first quarter. Average inflation for the first quarter was 1.08%, while the second quarter is projected to be 0.14-0.15%, said Mr Poonpong.
Factors contributing to the decline include the government's ongoing cost of living relief measures, a high base price for fresh vegetables and eggs the previous year, and more favourable weather conditions, leading to increased agricultural output.
Lower Dubai crude oil prices, dipping from 2024, resulted in a corresponding decrease in domestic gasohol prices, noted TPSO.
Major businesses have also been promoting marketing activities that align with the government's economic stimulus measures.
However, other factors support higher inflation, particularly costly raw agricultural materials, such as coconut, coffee and palm oil, which caused higher prices for finished products such as coconut milk, coffee and vegetable oil.
Ready-to-eat meals remain costly because of rising raw material costs, he said.
Mr Poonpong said the new tariff measures imposed by the US could affect several products. Initially, oil and other potential imports from the US might be affected if they are a part of negotiations.
However, the new tariffs will not affect the service sector, including electricity and water bills as well as education services, noted TPSO.
He said the annual inflation target will be revised and announced by early May after factoring in the effects of the US tariffs.
The office also analysed the impact of the recent earthquake on inflation, assessing 464 goods and services, finding 95% of items were unaffected, including ready-to-eat meals, bottled water, personal care products, and medicines.
Only 2% of items increased in price, attributed to higher demand for construction-related services and materials, such as labour costs, cement, bricks, floor tiles and paint.
Meanwhile, 3% of items declined in price, particularly condo rental prices, airfares, accommodation and hotel rates and tourism-related expenses. The reductions reflect public concern and a slowdown in tourist activity following the earthquake, said Mr Poonpong.
