Key challenges: Visitors crowd the vibrant Khlong Hae Floating Market in Hat Yai, one of southern Thailand’s most popular tourist draws. The region posted the strongest farm income growth at 4.5%, while incomes in the central region fell 5.1%
BANGKOK: The Trade Policy and Strategy Office (TPSO) of the Commerce Ministry reports uneven conditions in Thailand’s regional economies.
In its August 2026 review, it said rising living costs remained a keysiness formation and tourism continued to grow well in some areas
TPSO data showed that the headline consumer price index (CPI) rose 2.53% in August, with increases in every region.
The south recorded the highest inflation rate at 2.85%, followed by the central region at 2.81%, the northeast at 2.43%, Bangkok and surrounding provinces 2.38%, and the north 2.21%, reflecting widespread price pressures.
A key factor was the 2.99% increase in prices of food and non-alcoholic beverages, compared with 2.23% for other categories, excluding food and beverages.
Among agricultural products, fresh vegetable prices rose 7.42%, while prices for eggs and dairy products increased 5.16%.
TPSO said that prices of fresh vegetables, fresh fruit, chicken eggs and fresh chicken were still likely to increase because of rising demand and the effects of weather on supply. The trend was consistent with global food prices.
TPSO cited the Food and Agriculture Organisation of the United Nations, which reported that its Food Price Index rose 2.5% year-on-year in August.
Its Vegetable Oil Price Index stood at 196.9 points, the highest since June 2022, amid hot, dry weather and the effects of El Nino on production in South-East Asia.
Inflation caused by heat is referred to as heatflation.
The consumer confidence index fell from the previous month to 49.5 in August, remaining in the range indicating a lack of confidence.
The northeast was the only region with a reading indicating confidence, at 52.0. The central region stood at 47.3, Bangkok and surrounding provinces at 49.2, the north at 49.4, and the south at 49.9.
New business registrations nationwide totalled 7,913 in August, up 3.6% from a year earlier.
The northeast recorded the fastest growth at 36.3%, with 1,037 new legal entities, followed by the north with growth of 28.4% and the central region at 1%.
Registrations fell 3.7% in Bangkok and surrounding provinces and 11.5% in the south.
However, registered business dissolutions also increased, reaching 2,244 nationwide, up 35.2%, with rises in every region.
The central region recorded the largest increase at 69.1%.
The increases elsewhere were 27.9% in the south, 25.6% in Bangkok and surrounding provinces, 24.1% in the northeast, and 35.1% in the north.
Business sales, for which the latest data were from June 2026, fell 0.2% nationwide.
The central region recorded strong growth of 17.1%, while sales rose 3.1% in the northeast, 1.2% in the south and 1.1% in the north.
Bangkok and surrounding provinces recorded a 5% decline.
Visitor revenue nationwide reached 235.16 billion baht in July 2026, up 1.2% from a year earlier.
The north recorded the fastest growth at 14.8%, with revenue of 17.98 billion baht, while the northeast posted growth of 5.2% and revenue of 10.44 billion baht.
The central region generated visitor revenue of 51.483 billion baht, up 0.7%, while Bangkok and surrounding provinces recorded 73.438 billion baht, down 0.1%.
Revenue in the south stood at 81.82 billion baht, down 0.4%, reflecting differences in the pace of tourism recovery between regions.
The report also put Thailand’s nationwide farm income growth in June at 5.6%, with substantial differences between regions.
The south was reported to have the strongest regional growth at 4.5%, while farm incomes fell 5.1% in the central region, 3.6% in the east, 9.3% in the west, 4.8% in the north and 2.8% in the northeast. — The Nation/ANN
