Strong Baht - Notice the Cheaper Prices - Me Neither

[Thomas J]

A strong currency makes imports cheaper and exports more expensive.  Since the THB is extremely strong, goods imported would cost less.  Has anyone noticed prices for imported products going down.  I sure have not.  If anything prices seem to continue to rise.  Wait, once the THB shrinks in value the prices will go up and the stores will blame the weak baht. 

[thaitero]

Thai way and western way are different..????

[Kwasaki]

Fuel cheap, lecky cheap, gas cheap, food cheap, beer cheap what more you want. ????

[RotBenz8888]

Condo oversupply- notice the cheaper prices- me neither....

[EricTh]

I noticed prices of cooked food have gone up by around 10 baht.

 

Thai baht is strong but their demands for materialism have gone up too.

Edited August 10, 2019 by EricTh

[Naam]

37 minutes ago, Kwasaki said:

Fuel cheap, lecky cheap, gas cheap, food cheap, beer cheap what more you want. ????

income tax, property tax, hot chillies, coconuts, durian "cheap³".

[Kwasaki]

2 hours ago, Naam said:

income tax, property tax, hot chillies, coconuts, durian "cheap³".

Well not rich enough to pay income tax, ????  property tax on our house is 8 baht a year I save 25 stang coins for that, we grow our own chillies and coconuts, I don't like durian yuck. ????

[WalkingOrders]

I would argue that currency diiferential is only one part of what causes inflationary pressure reflected in consumer prices, and it works the same way all over the world. I pay less for wholesale bicycles does not mean I will sell them for a lower price. I sell them for less ONLY if my sales are slowing down, which forces me to lower prices, and evidently there isn't a sufficient slowing of Thai economy to show up in prices, or in any event, its hard to see one or two points perhaps.

[Henryford]

12 hours ago, Kwasaki said:

Fuel cheap, lecky cheap, gas cheap, food cheap, beer cheap what more you want. ????

You think beer is cheap here? It is more expensive than in Western supermarkets and compared to Thai wages i think very expensive. A case of beer is equal to 2 days wages. And don't even mention wine...

[TheGhostWithin]

Prices will have to fall soon, no doubt the number of people finding themselves on reduced hours and out of work is coming. Thailand is about to enter economic contraction in construction, and tourism. Two main hirers within the Thai labor economy. If prices don't fall, people will begin to act. And the Thais are very good at acting when they feel they are not being given a fair go. 

 

Those living in Thailand may not be aware, but Thailand has become very expensive. Property prices in many places now exceed the cost of property in my home country of New Zealand, and food in many places is basically the same cost. Most of the cheap and cheerful street eats are gone, so the "high risk lower quality" (yes, we know that is debatable) stuff is gone but higher quality foreign imported products have not flowed in. 

 

I have a trip booked next month, we are doing a week with the family as required by family law, but beyond that we are going to Taiwan, and I am going ecoring in Vietnam - this will be the first time in 14 years I have had a vacation predominantly out of Thailand. I am just one, but I could see many others also trying out other countries cheaper, and apparently much more welcoming to Farang. 

 

And yes, we will do our shopping in Singapore on the way home, where prices have fallen reflective of economic condition, but we cannot be fleeced by Thai immigration who now say Thai people can not bring more than 40,000 baht worth of items into the country without facing import taxes - the bag we carry onboard costs more than that, what a joke. 

 

Hope that the locals get some realistic market activity soon and prices fall. 

[MartinKal]

2 hours ago, WalkingOrders said:

I would argue that currency diiferential is only one part of what causes inflationary pressure reflected in consumer prices, and it works the same way all over the world. I pay less for wholesale bicycles does not mean I will sell them for a lower price. I sell them for less ONLY if my sales are slowing down, which forces me to lower prices, and evidently there isn't a sufficient slowing of Thai economy to show up in prices, or in any event, its hard to see one or two points perhaps.

Competition lowers prices and raises quality. That's the theory.

[shady86]

Only the importers benefit from strong baht, the local distributors and retailers still get things in baht. Only benefit is buy things direct from overseas, eliminating these importers and distributors. 

[worgeordie]

Its profit that makes things expensive, importers of

goods must be making plenty,if the THB ever goes 

down prices will increase,cannot win.

regards worgeordie

[Brickbat]

16 hours ago, thaitero said:

Thai way and western way are different..???? 

There is only Sense and Nonsense . They will feel the pinch in a big way from their nonsense

[Srikcir]

I buy many foods imported from New Zealand, Australia and the U.S.

Prices have consistently increased in the last two years faster than Thailand's rate of inflation.

For some products they just cease being stocked.

[spidermike007]

Have you every noticed prices going down here? The only thing that seems to fluctuate here is the price of gas. And even that does not ever go down proportionately with the price of crude. And the amount of the fines that the cops ask me for. I always tell them a ridiculously low amount, that I am willing to give them, and end up giving them such a hard time, that they give in eventually. 

 

For the most part, inflation seems to be the way of the world. I see it everywhere I go. It is what it is. 

[Nanaplaza666]

16 hours ago, thaitero said:

Thai way and western way are different..????

Not really , remember when the euro came , all prices went up + the euro was worth dubbel of what we had before so overpaying everything . Its that we got used to it now but i still think thats the biggest bulls... ever happened . Its only the rich getting richer and the poor getting poorer . 

[madmen]

Wine ? laughing bird 1.5 litre that was reasonable for Thailand at 420b 6 months ago now 550b at tesco. Will be 1k in a few years probably

[Jaxxper]

At least one "Expat " shop here in Pattaya is reducing its imported goods prices based on exchange rates, but agree they are probably a minority. Not sure where some of the posters buy their beer here , but based on a recent visit to the UK beer is definitely cheaper here. Also seen many of the enlightened bar owners putting on special happy hour local beer prices, as low as Thb 40 a bottle. The old protocol formulae of putting up prices to compensate for lack of volume sales doesn't work anymore. It's too old school.

[WalkingOrders]

2 hours ago, MartinKal said:

Competition lowers prices and raises quality. That's the theory

One of the factors of many that drive price (and quality, if we want to talk about that.) in an economy. Thats for sure. Could even force me to lower the price of new cutting edge electric-bicycles in an otherwise raging economy....but all else is never equal...but anyhow Thai Central Bank cut  qtr point the other day so hey Expats...things are looking up.

[JimmyJ]

17 hours ago, RotBenz8888 said:

Condo oversupply- notice the cheaper prices- me neither....

 

Purchase prices unchanged?

 

But what about rental prices?

[Thomas J]

https://www.economicshelp.org/blog/3457/currency/problems-of-a-strong-currency/

Irrespective of any other factor such as competition, quality, demand etc. 

If a country has a strong currency, the products imported cost less, the products it sells overseas cost more. 

Since prices of products like imported groceries, beer, wine, cheese etc are not falling but in some cases rising it means that whoever is doing the importing is reaping the benefits of the lower import cost and it is not being passed on to the customer.  Whether that is the importer who is keeping the extra profit or the retailer that can not be determined.  But one way or another the customers in Thai are not the ones who are seeing any benefit
 

[southcoast]

17 hours ago, Kwasaki said:

Fuel cheap, lecky cheap, gas cheap, food cheap, beer cheap what more you want. ????

A democratic country would be a start...

[Naam]

3 hours ago, TheGhostWithin said:

Prices will have to fall soon, no doubt the number of people finding themselves on reduced hours and out of work is coming. Thailand is about to enter economic contraction in construction, and tourism. Two main hirers within the Thai labor economy. If prices don't fall, people will begin to act. And the Thais are very good at acting when they feel they are not being given a fair go. 

Thais will not act and that also applies to the 2½ million labourers from Myanmar, Laos and Cambodia who will be fired first and sent back to their home countries.

[Naam]

26 minutes ago, southcoast said:

18 hours ago, Kwasaki said:

Fuel cheap, lecky cheap, gas cheap, food cheap, beer cheap what more you want. ????

A democratic country would be a start...

yeah  right! we demand a democratic country and higher prices.

[Naam]

1 hour ago, Jaxxper said:

At least one "Expat " shop here in Pattaya is reducing its imported goods prices based on exchange rates, but agree they are probably a minority.

must be a secret "Expat shop" because you don't name it.

[Thomas J]

45 minutes ago, Naam said:

Fuel cheap, lecky cheap, gas cheap, food cheap, beer cheap what more you want

Naam, you miss the point.  First off cheap compared to what?  I am from the USA and I can tell you gas, food, beer, wine, etc are noticeably more expensive in Thailand.  Second, the point is that the prices SHOULD BE FALLING.  If it was a weak THB the stores would be raising prices to compensate for the higher costs.  Conversely, goods being brought into Thailand are NOW COSTING LESS so someone not the customer is benefiting from the strong THB. 

 

[madmen]

Google food for foreigner. 2 kg mature oz Cheddar around 550b including postage

[WalkingOrders]

4 hours ago, TheGhostWithin said:

Those living in Thailand may not be aware, but Thailand has become very expensive.

Classic  ????

[Beggar]

Not everything is bad. For instance many currencies got cheaper.