August inflation in Thailand up 0.52%

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August inflation up 0.52%

 

   

BANGKOK (NNT) - August Inflation increased by 0.52 percent due to the higher prices of fresh food products especially rice and sticky rice as well as fruit and vegetables.

 

Ms Phimchanok Wornkhorphorn, Director of the Office of Trade Policy and Strategy, Ministry of Commerce, has reported on the overall state of the prices of 422 goods and services in August 2019, which were used to calculate the general consumer price index or the inflation rate.

 

It was found that the prices of 221 products had risen, especially the price of sticky rice which rose by 27.3 percent. The price of limes rose by 70 percent.

 

The price of pork rose by 10.2 percent. The price of fresh chili rose by 22 percent. Public transport fares also rose. Elsewhere, 112 products saw lower prices, such as vegetable oil, palm oil and fuel. There were also 89 products where prices remained stable.

 

The prices of food and non-alcoholic beverages rose by 2.63 percent, based on fresh food products due to the small amount of output. However, the prices of other product categories decreased by 0.67 percent following the cost of all types of fuel decreasing 8.15 percent, except for NGV and LPG, resulting in the expansion of the inflation rate in August by 0.52 percent.

 

However, it was considered much slower than the previous month. As a result, during the first eight months, the inflation rate rose by 0.87 percent, well within the forecast range of 0.7-1.3 percent.

 

The ministry has forecast a 2019 inflation rate of between 0.8 and 0.9 percent, compared to the Bank of Thailand’s (BOT) and the Ministry of Finance’s estimates of one percent.

 

The main factor comes from the constant decline in domestic energy prices. Meanwhile, consumer goods prices were relatively stable. There are still signs of a slowdown in consumer demand as consumers are still careful about their spending.

 

However, deflation is still unlikely since it is mainly related to a decrease in fuel prices. It is necessary to gauge the government’s economic stimulus measures including farmers’ income pledging and topping up the state welfare card which will stimulate consumption and improve economy.

 

-- © Copyright NNT 2019-09-04

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[Srikcir]

If one adjusts Thai consumer prices for state-controlled pricing, state-owned public services and state-owned enterprises, I'd say the 2019 inflation rate would be about 2-2.5%. Which would mean all the frequent government domestic farm subsidies, easier household debt, lower manufacturing and wage stagnation do nothing to hold back further inflation.

[Eric Loh]

I just wonder whether the basket of goods that is used to extract basic pricing information to calculate inflation has changed over the years. Seem that inflation has been benign for the last 5 years but the general population always complaining about the cost of living going up especially education expenses. The goods in the basket should be adjusted periodically to account for changes in consumer habits. Yes, I don;t trust Ministry inflation number.  

[bkk6060]

12 minutes ago, Eric Loh said:

I just wonder whether the basket of goods that is used to extract basic pricing information to calculate inflation has changed over the years. Seem that inflation has been benign for the last 5 years but the general population always complaining about the cost of living going up especially education expenses. The goods in the basket should be adjusted periodically to account for changes in consumer habits. Yes, I don;t trust Ministry inflation number.  

Yes.

And I do not trust Expat comments about how expensive everything has become.

I am paying the same 40 b for my soup or chicken rice that I paid 3 years ago.

My rent actually has gone down, so many empty properties owners are desperate.

A one hour time with a girl on BR can easily be had for 500 to 700 b.

Utilities have pretty much remained the same.

 

There are actually golf courses in Pattaya area that have reduced their price during low season.

Some 1000 b for green fee, cart, caddy.  Quite a bargain from my home country.

 

The exchange rate is not as good so I guess if you factor in that costs are higher for expats.

But the general price number for things Thai have not changed much from my observation.

 

[rkidlad]

33 minutes ago, bkk6060 said:

Yes.

And I do not trust Expat comments about how expensive everything has become.

I am paying the same 40 b for my soup or chicken rice that I paid 3 years ago.

My rent actually has gone down, so many empty properties owners are desperate.

A one hour time with a girl on BR can easily be had for 500 to 700 b.

Utilities have pretty much remained the same.

 

There are actually golf courses in Pattaya area that have reduced their price during low season.

Some 1000 b for green fee, cart, caddy.  Quite a bargain from my home country.

 

The exchange rate is not as good so I guess if you factor in that costs are higher for expats.

But the general price number for things Thai have not changed much from my observation.

 

I earn an expat salary now and I’ve been here over 10 years. I’ve noticed prices rise dramatically here. Every time I go back to the UK so many things seem so cheap compared to here. I have no reason to lie or embellish. 

 

How the average worker survives in Bangkok is beyond me. I guess necessity really is the mother of all inventions. 

[miamiman123]

BR?