Thai households face 15% cost increase despite government reports of deflation

Thailand is facing mounting financial pressures, with the cost of living rising sharply despite official deflation figures. 

Marketbuzzz’s nationwide survey indicates 42% of Thai citizens are most concerned about increasing prices, especially when household essentials such as housing, food, transportation, and utilities have seen a 15.3% rise compared to last year. 

This surge in costs stands in stark contrast to the government's report of deflation at -0.25% in June 2025.

Income not matching expenses

The Marketbuzzz study, which surveyed 865 people across the country, highlights the growing disparity between stagnant wages and rising living costs. The disconnect between official economic indicators and daily life is particularly evident in the following groups:

• Life stage pressure: Married couples with children report the highest concerns, with 46% worried about rising costs, compared to 39% of single individuals.
• Age-related financial stress: Older Thais, especially those aged 55 and above, are under the most financial pressure, with 59% struggling, often due to caregiving responsibilities for extended family members.
• Regional differences: Urban dwellers, especially in Bangkok, report greater concern over the cost of living, with 54% expressing worry, compared to 37% in rural areas. This is attributed to higher living costs in cities.

Financial strain on Thai households

Data from the National Statistical Office (NSO) for 2024 reveals the average monthly household expenditure in Thailand is 18,207 baht. 

Over 8,000 baht, or 42%, goes on food and beverages, while non-food expenses account for over 10,000 baht, or 58%. Alarming, however, is the average household debt, which stands at 606,378 baht.

Income-expense gap widens

Despite minimum wage increases of between 337-400 baht per day, many Thai households face a growing gap between income and basic living costs. 

Grant Bertoli, CEO of Marketbuzzz, stressed that the survey underscores the real issue, which is not just low inflation rates, but rising prices for essential goods and services like housing, utilities, healthcare, and transportation.

"We need a broader measure of economic well-being," Bertoli said. "Even if overall inflation remains low or negative, the reality is that the cost of necessary goods continues to pressure household expenses and affects different population groups unevenly."

Long-term concerns

Many Thais are adjusting their spending habits, with some families cutting back on necessities while others are increasing their debt. 

If the cost of living continues to rise while incomes remain unchanged or decrease, the financial burden on individuals and families will intensify, leading to reduced quality of life, increased debt risks, and wider social inequality.

The cost of living is more than just an economic statistic; it’s a daily reality that millions of Thais are currently grappling with. 

Marketbuzzz stresses the need for a holistic approach to understanding household pressures, not just relying on macroeconomic indicators but reflecting the real-life experiences of the people. 

It is crucial to centre economic well-being around the people’s lived experiences, it added.