Strong baht: why prices steady?

[Number 6]

1 minute ago, marcusarelus said:

Prices in Thailand are steady to no increase because inflation is 0 to 2%.  Thailand does not import much as opposed to exports.  Prices on imported goods from the UK or Australia are staying the same because Thai merchants think Thai people are stupid.   

Just a suspicion but I think we'd all be shocked at the volume of Thai imports. Chinese crap, American planes, German trains. Medical equipment. List is endless including ridiculous British and European foods. Booze.

[marcusarelus]

Just now, Number 6 said:

Just a suspicion but I think we'd all be shocked at the volume of Thai imports. Chinese crap, American planes, German trains. Medical equipment. List is endless including ridiculous British and European foods. Booze.

That's why we have economic reporting sites so the IMF and other organizations can rate Thai loans and bonds and make the economic world go round.  Thailand’s medical device market was estimated at $1.242 billion in 2017.  In 2017, imports of medical devices were approximately $931 million, and U.S. medical devices led the imported market.

 

So on the first one I looked up you were very wrong.  

https://www.export.gov/article?id=Thailand-medical-equipment

[emptypockets]

4 hours ago, rwill said:

I don't live in a tourist town.  And just today talking to some people they were complaining about the bad economy.  Their wages have dropped to 250-280/day now from 300/day.  And prices at the local market are going up too.  So they are getting hit on both sides.

I bet they didn't complain when their wages went from 100 baht as standard to 300 baht. Any surprises why prices are going up. When you triple one input cost arbitrarily what do you think will happen. And likely go to 450 baht in the near future.

[nauseus]

10 minutes ago, marcusarelus said:

Did you agree with my answer in post #57?

First part yes. Second part.....noooooooooooooo.

[wilailuk]

5 hours ago, Percy P said:

Not necessary .Goods are not brought on the day.Could have been brought 2 years ago. 

Not the Edam Cheese from NZ, price now 209 B - not long ago 179 B..

 

Same with the Fuji apples 4 pack - 55 now, last year 35 to 40..

 

 

[Thomas J]

If the baht remains strong, the prices will remain unchanged to reap profits.  If the baht weakens, they will use it as an excuse to raise prices to make up for the "more" expensive goods. 

[Falconator]

I never really realized that the baht was that strong. It's only declined slightly against the dollar, so I didn't notice any big changes.

 

Sorry Euro-friends.

 

It's more like the euro and pound aren't doing so well.

 

[sanemax]

7 minutes ago, Falconator said:

I never really realized that the baht was that strong. It's only declined slightly against the dollar, so I didn't notice any big changes.

 

Sorry Euro-friends.

 

It's more like the euro and pound aren't doing so well.

 

The US $ has dropped about 18 % against the Baht in the last 7 or so years

[JASON THAI]

I am lucky I brought 2000 tins of baked beans 4 years ago to eat at only 20 baht a tin it's now 35 Baht a tin hopefully I will have enough to keep me going to the Baht goes down  

[marcusarelus]

9 hours ago, nauseus said:

First part yes. Second part.....noooooooooooooo.

1.  Prices in Thailand are steady to no increase because inflation is 0 to 2%.  2.  Thailand does not import much as opposed to exports.  3.  Prices on imported goods from the UK or Australia are staying the same because Thai merchants think Thai people are stupid.   

 

There are 3 parts.  Which do you agree with and which disagree?

[nauseus]

10 minutes ago, marcusarelus said:

1.  Prices in Thailand are steady to no increase because inflation is 0 to 2%.  2.  Thailand does not import much as opposed to exports.  3.  Prices on imported goods from the UK or Australia are staying the same because Thai merchants think Thai people are stupid.   

 

There are 3 parts.  Which do you agree with and which disagree?

Disagree with 1 and 3 w.r.t. the topic which concerns imported retail goods prices from Europe. Item 2 is not really relevant.

 

1.  Prices of these imports only slightly affect national inflation figures. Insignificant.

 

2. Thailand is a net exporter, yes. Imports versus exports affect the trade balance but not inflation much.

 

3.  Prices on imported goods from Europe are not staying the same. They are rising. I can't say why. It's probably because retail prices are not well regulated and businesses here always seem to push prices as high as they can before they see dropping sales and profit.

[nauseus]

6 hours ago, JASON THAI said:

I am lucky I brought 2000 tins of baked beans 4 years ago to eat at only 20 baht a tin it's now 35 Baht a tin hopefully I will have enough to keep me going to the Baht goes down  

You are lucky!

[marcusarelus]

9 minutes ago, nauseus said:

Disagree with 1 and 3 w.r.t. the topic which concerns imported retail goods prices from Europe. Item 2 is not really relevant.

 

1.  Prices of these imports only slightly affect national inflation figures. Insignificant.

 

2. Thailand is a net exporter, yes. Imports versus exports affect the trade balance but not inflation much.

 

3.  Prices on imported goods from Europe are not staying the same. They are rising. I can't say why. It's probably because retail prices are not well regulated and businesses here always seem to push prices as high as they can before they see dropping sales and profit.

Why would a free economy regulate retail prices?  Is this Russia and are we rationing products?  

 

In a free economy the market regulates prices that's why non imports are important as they offer an alternative to expensive European rip off items.  

 

To answer the question of the thread which I have 3 times is Prices are steady because there is almost no inflation in Thailand.  You can buy imported soda water or domestic.  You can buy imported pork or domestic.  You can lunch with Russian women or Thai.  

 

http://blog.peerform.com/top-ten-most-socialist-countries-in-the-world/

 

Thailand is not on the list.  

Edited July 27, 2019 by marcusarelus

[Date Masamune]

Watch crude prices.

 

Baht/Litre goes up very fast when it rises but when world petrol price goes down the Fuel companies are very very slow to go down.

 

Your HP sauces and others come from similar near cartel markets with relatively few large vendors

Somewhat of an inflexible price market, and a scam in that prices rarely go down. You might see a discount on cheese occasionally.

 

[hugh2121]

21 hours ago, sanemax said:

No, they are ordered years before at set prices

I don't think that applies with food items. Farmers cannot guarantee availability that far ahead.

[sanemax]

41 minutes ago, hugh2121 said:

I don't think that applies with food items. Farmers cannot guarantee availability that far ahead.

Its quite probably done through a middleman, the wholesalers .

 

[TG911]

On 7/26/2019 at 6:28 PM, LivinLOS said:

ohh your a genius I can tell.. 

lol, good to see you posting some stuff again LiL 

 

I've read the forum, day in, day out, only news letters in my inbox, never replied ... for the past 6 years, or more, can't remember ... the shit the farangs post on here made me very very careful when I see them and meet them. Right here in Thailand. 

 

This post made me laugh out so loud. Marcusarelus having no clue to whom he talks about when it comes to metals, especially gold ????

 

Made me reset my password to log on again and just to say these few words.

 

Hope you are doing good LiL ..!

 

 

 

Edited July 27, 2019 by TG911

[rickudon]

I only buy one or two imported items from the UK. The price has stayed the same since 2015, or even gone up. Prices in the UK have changed very little in that time as well. Meanwhile, the GBP has fallen over 20% against the Baht. International transport costs have hardly changed. 

The reason is Thai greed or laziness - they often just take the UK price in pence and change to Baht - a 150% markup. I know there are SOME extra costs to get it to market in Thailand, but not that much. When foodstuffs from Thailand are imported to the UK, you do not get that level of increase.

[uhuh]

Is inflation in Thailand measured with the hedonic method?

[David30]

The costs of doing business are always rising. I think this problem will remain.

Edited August 9, 2019 by David30

[Naam]

On 7/27/2019 at 12:59 AM, Falconator said:

I never really realized that the baht was that strong. It's only declined slightly against the dollar, so I didn't notice any big changes.

we live in Thailand since 2005. since then USD lost 27.375% vx. THB. you call that "slightly"?

[Camillof]

On 7/27/2019 at 2:34 AM, marcusarelus said:

Why would a free economy regulate retail prices?

 

Thank you for your replies. Are you so sure this is a free economy? What about monopolies, as others mentioned in this discussion? Personally I think this is the real core of the matter. As to your statement "Thai merchants think Thai people are stupid", personally I would reword it like this: "Thai merchants know Thai consumers are generally gullible".