Bangkok, Krungthai Bank assesses that consumer purchasing power trends continue to be weak, as reflected by the general inflation rate in July at 0.83%, which accelerated from June but was still below the lower bound of the inflation target of 1%.Krungthai COMPASS, Krungthai Bank, revealed that the general inflation rate in July 2024 was 0.83% YoY, growing at a slightly higher rate than the previous month at 0.62% YoY and higher than analysts' expectations of 0.7%. The price of fresh food category grew by 1.10% YoY from the previous month at 0.19% YoY, following the increase in the price of fresh fruit, along with the increase in the price of white rice and glutinous rice. Meanwhile, the price of energy category grew by 1.78% YoY, following the price of gasoline and gasohol. The core inflation rate increased to 0.52% YoY from the previous month at 0.36% YoY, mainly due to the increase in the price of processed food. However, the price of some products contracted, including personal items, which were adjuste d downward in line with marketing promotions by entrepreneurs, and the price of clothing and shoes category, which continued to contract. The general inflation rate for the first 7 months of the year was 0.11% YoY, while the core inflation rate was 0.42% YoY.Krungthai COMPASS assesses that consumer purchasing power continues to be weak, reflected by the trend of inflation rates that remain low. Although in July 2024, inflation rates accelerated slightly to 0.83% YoY, it is lower than the lower bound of the 1% inflation target, with some products still contracting, such as clothing and personal care costs. In the future, although inflation is expected to accelerate and enter the inflation target in the fourth quarter, it is due to the low base of energy prices, both electricity and retail oil prices, last year. Meanwhile, the latest consumer confidence index by the Ministry of Commerce was revised down from 52.3 in June to 49.7 in July, the first negative level in 20 months since December 2022, partly due to public concerns over the cost of living, electricity, fuel prices, and high debt burdens, reflecting that the economy still lacks demand-side momentum, which will limit Thailand's GDP growth in the future.Source : Thai News Agency