The headline consumer price index (CPI) dropped 0.66% in January from a year earlier, following an annual fall of 0.3% in the previous month, the ministry said, reports the Bangkok Post, also citing a Reuters report.
The reading compared with a forecast decline of 0.4% in a Reuters poll, and remained well below the Bank of Thailand’s inflation target range of 1% to 3%.
Headline inflation is expected to remain negative in February and March before turning positive in April, the ministry said.
Core CPI, which excludes volatile energy and fresh food prices, rose 0.6% in January compared to a year earlier.
The Bank of Thailand has said that inflation was below its target range due mainly to supply-side factors, primarily in the manufacturing sector.
The weak inflation over the past year has been mainly driven by declines in energy and fresh food prices. Energy costs fell in line with global oil prices, it noted.