Oil Price Spike Drives Thailand Inflation to 2.89%

Oil Price Spike Drives Thailand Inflation to 2.89%

BANGKOK, May 6, 2026 — Thailand’s annual inflation rate rose 2.89% in April from a year earlier, driven by higher energy and food prices linked to global oil market disruptions caused by tensions in the Middle East, officials said on Wednesday.

The increase followed sharp rises in global crude oil prices after conflict in the Middle East disrupted shipping through the Strait of Hormuz, a key global energy transit route, according to the Trade Policy and Strategy Office.

Officials said higher fuel costs pushed up public transport fares and contributed to broader increases in food and service prices across the country.

Non-food inflation rose 4.14% year-on-year in April, led by increases in transportation costs, housing rents and cleaning service fees.

Meanwhile, prices in the food and non-alcoholic beverages category increased 0.98%, reflecting higher costs for ready-made meals, vegetables, eggs, rice and chicken.

Thailand’s overall consumer price index for the first four months of 2026 increased 0.32% compared with the same period a year earlier.

Despite the latest increase, Trade Policy and Strategy Office official Nantapong Chiralerspong said Thailand’s inflation remained relatively low compared with other ASEAN economies. In March, Thailand recorded one of the region’s lowest inflation rates and ranked ninth lowest globally among 140 economies monitored.

Officials warned inflationary pressures may continue into May if oil prices remain elevated.

However, authorities expect some relief later this year through the government’s “Thai Chuay Thai” economic support programme, which includes measures aimed at reducing electricity costs and easing household living expenses.

Thailand, like many import-dependent economies in Southeast Asia, remains vulnerable to fluctuations in global energy prices, particularly amid geopolitical instability affecting oil supply routes.