Saving is the new buzzword as prices rise in Thailand

[webfact]

 

OPINION | by Michael Bridge

Normally you start to feel sorry when you read about certain countries struggling with inflation, and certainly Sri Lanka and Ukraine would be good examples.

But as we keep reading in the media and online, this rampant rise in the cost of living is literally hitting everyone around the globe.

International increases

An economist has warned that the USA is on the verge of a 'cost of living' crisis due to rapid inflation. Food prices increased by 9.4% on average in the year to April – their largest 12-month rise in 40 years.

In Australia, they compared the Consumer Price Index for 2020, 2021 and 2022 to get a clear sense of how much prices rose.

The study found that between March 2021 and March 2022, the average inflation on prices for all items increased by 8.5%, a significant increase compared to the year before when the increase was only 2.6%.

Consumer price inflation in the UK has risen sharply in recent months, with the 12-month growth rate reaching 7.9% for the Consumer Prices Index including owner occupiers' housing costs (CPIH) in May 2022, and 9.1% for the Consumer Prices Index (CPI) in the same month.

And in Vietnam, the annual inflation rate in Vietnam increased to a near 2-year high of 3.37 percent in June of 2022 from 2.86 percent in May, mainly boosted by faster rises in prices of food & catering services (2.27 percent vs 1.32 percent), transport (21.41 percent vs 18.42 percent), plus and textiles and footwear (1.49 percent). 

In Thailand too

Thailand's 2022 headline CPI is projected to rise between 4 to 5%, compared with 1.23% in 2021. 

Core consumer prices rose 2.51% YoY in June, the most since March 2012, after a 2.28% gain in May and surpassing consensus of 2.37%.

Focus Economics Consensus Forecast panelists see inflation averaging 2.0% in 2022, which is up 0.3 percentage points from last month's forecast, while in 2023 panelists predict average inflation of 1.3%.

 

Not helped by the Thai baht drop

The dip in the Thai Baht is attributed to the conflict between Russia and Ukraine that continues to push up the prices of commodities and the inflation rate, the US Federal Reserve's recent interest rate hike, and China's worsening pandemic and its accompanying challenges for supply chains and shipping.

 

May help Thai exports but will mean imports will be more expensive of course.

 

Poorer Expats

 

All these factors are not helping the many ex-pats who rely on their monthly pensions, which in some cases have been shrinking especially British pensions.

 

I personally keep a running cash flow going, which I have been doing for several years, so I can track my outgoings against income.

 

For most years I got by on THB2,000 a week on buying food etc., and THB600 a week for petrol.

 

This week my groceries have totaled THB3,700 and I am struggling to get by with THB1,000 in the tank for just local trips around town.

 

This has had an effect on the funds I have left for entertainment, so going out to eat is very rare now.

 

At home, I have also made a concerted effort to turn off the A/C and open the balcony during the storms which cool down the rooms.

 

I even bought a cooler which takes water and even ice cubes and is cheaper to run than the larger A/C units.

 

Seems we are all going to have to keep an eye on our monthly outgoings for some time unless you win the lottery!

 

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[garyk]

Posh, that doesn't phase the super rich tourists and expats pouring into Thailand.

 

[madmitch]

The headline bears no correlation to the narrative whatsoever.

[garyk]

6 minutes ago, madmitch said:

The headline bears no correlation to the narrative whatsoever.

This is Thailand where cash is king, and the paid off house instead of a D-MAX in the driveway is the new norm... 

[vandeventer]

This is very sad for Thai people who hasn't ever got a cost of living increase in their wages, ever. So I would say if you have Thai friends or family to help them as much as you can in these hard times, because it's not going to get better any time soon.

[itsari]

Time to take the foot of the throttle and save lives as well as money ,

 

[Orinoco]

28 minutes ago, vandeventer said:

This is very sad for Thai people who hasn't ever got a cost of living increase in their wages, ever. So I would say if you have Thai friends or family to help them as much as you can in these hard times, because it's not going to get better any time soon.

All very nice. 

But if you wan't to help,  buy them food and water.

Don't hand over cash. End of.

 

[daveAustin]

Could be a lot worse for Thailand. Some western countries’ utilities are x2, x3. The gov could do more on fuel and lower its ridiculous tax figures on alcohol for one. 

[Bim Smith]

It's by design and no accident. And why Ukraine? Turkey inflation is running at over 70 percent. There are far worse countries.

[bkk6060]

52 minutes ago, Orinoco said:

Don't hand over cash. End of

Why not? They could double it gambling or maybe win the lottery.

[Pouatchee]

I thought 'buzz' was the new buzzword... since ganja got legalized.

[mikebell]

4 hours ago, webfact said:

Thailand's 2022 headline CPI is projected to rise between 4 to 5%, compared with 1.23% in 2021. 

 

4 hours ago, webfact said:

THB2,000 a week on buying food etc., and THB600 a week for petrol.

 

This week my groceries have totaled THB3,700 and I am struggling to get by with THB1,000 in the tank

From 2000 to 3700 is a lot more than 5% rise?  Ditto fuel from 600 to 1000.

[vandeventer]

1 hour ago, Orinoco said:

All very nice. 

But if you wan't to help,  buy them food and water.

Don't hand over cash. End of.

 

Like you know the food that Thai's eat give me a break, and all the greens and herbs and spices. Just help them out when they need help now is that so hard, don't make a song and dance about it.

[easydoor]

A very poor way to compare prices: one week 2000THB and the nest week  2700. Benzine: one week 600THB next week 1000THB. Did you buy exact the same things? Did you drive the same km's? Prices went up but not the rate you are writing about. You have to compare over a much longer time to have a good view over this matter. I don't want you to do my economic calculations.

[bkk6060]

One thing that has always surprised me here is the food waste.  People seem to like ordering many different dishes of food, which is OK. But, groups at restaurants with piles of food still sitting on the table and they have finished eating.  Staff just picks it all up for garbage.

[RichardColeman]

5 hours ago, webfact said:

Not helped by the Thai baht drop

Against the $ only ! Every other currency it seems to be gaining or stable. Total joke reporting

[Orinoco]

1 hour ago, bkk6060 said:

Why not? They could double it gambling or maybe win the lottery.

You got it. 

 

 

[warrima]

5 hours ago, webfact said:

I even bought a cooler which takes water and even ice cubes and is cheaper to run than the larger A/C units.

Swamp coolers are useless here. They just add to the humidity. I thought this guy was some big shot in Dubai before he moved here - according to his golf article. Now he's nickel and diming on air con in thailand. Classy!

[Orinoco]

51 minutes ago, vandeventer said:

Like you know the food that Thai's eat give me a break, and all the greens and herbs and spices. Just help them out when they need help now is that so hard, don't make a song and dance about it.

Some posters just don't understand Thai people.

There is nothing wrong going and paying the electric bill or rent for them if you feel the need, !!!!!!!!!

But to hand over cash , no way !!!!!!!!!!!!!!

Food and water, will go a long way, cash.

will be,  booze, cigs, gambling, party time.

And if you think the money will come back to you

when / if, the good times come, forget it.

Handing over cash to friends and family will just bring

resentment down the road.

But feel free to run your bank account down for them.

 

You could always ask yourself,  why they never plan for a rainy day ? answer, they care not about tomorrow, well tomorrow has just started to come.

and it will only get worse before better.

 

 

[MrMuddle]

2 hours ago, vandeventer said:

This is very sad for Thai people who hasn't ever got a cost of living increase in their wages, ever. So I would say if you have Thai friends or family to help them as much as you can in these hard times, because it's not going to get better any time soon.

I did that when I first married into my wife's family. I paid for a niece to rent a room for 4 years so she could go to university. She tried to turn all the family against me over a dispute about a drive. I only help the ones that help me now. The rest of them can do one!

[Chongalulu]

I’ve been reading some proper articles on this subject... The main drivers of inflation in much of Europe relates to energy (domestic and vehicle fuel). There has been very little of the former here and while the latter (diesel) has increased it remains a fraction of the price in Europe which in actual cash terms has increased far more than the 10 baht here. Food prices have increased but the movement I’ve seen is in no small way due to the egregious retail monopoly existing in thailand .

If the writer is mentioning U.K. state pensions he has overlooked  the more fundamental issue of them being frozen and the cumulative yearly effective penalty ex pats endure. Next April  they are projected to increase by 10+% (roughly £970 per annum) which of course retirees here won’t get. 
On balance though my calculations show I’m increasingly financially better off here than in U.K. ,especially as the rental market (my house is rented out) is very buoyant and increased my monthly rental by £500 in January ! 

Edited July 15, 2022 by onthedarkside
news trolling comment removed

[Purdey]

Savings count for a lot. Those who thought the UK pension would do and did not bother to save any extra are probably worse off. 

 Now, inflation is in the high single digits but it has been higher. See 

https://www.macrotrends.net/countries/THA/thailand/inflation-rate-cpi

 

Not to say today isn't bad, but it's not the worst. 

 

Edited July 15, 2022 by Purdey

[KhunLA]

Just now, Purdey said:

Savings count for a lot. Those who thought the UK pension would do and did not bother to save any extra are probably worse off. 

 Now, inflation is in the high single digits but ot has been higher. See 

https://www.macrotrends.net/countries/THA/thailand/inflation-rate-cpi

 

Not to say today isn't bad, but it's not the worst. 

 

TBH, I didn't even expect the US Soc Sec program or my small pension to last as long as I do.

Soc Sec has threatened insolvency forever, and the pension is guaranteed by the union, which also could go belly up as the airlines did, and stop at any time.

 

Trusting the gov't or a business for your retirement is a fool's folly IMHO

[wombat]

it may be the new buzz word for some...however...that save word goes against the grain of every TG i know.

[BangkokReady]

6 hours ago, webfact said:

Normally you start to feel sorry when you read about certain countries struggling with inflation, and certainly Sri Lanka and Ukraine would be good examples.

Aren't those countries experiencing economic collapse and actual war?  I would have thought that these were more important issues to show sympathy for. ????

[KhunLA]

8 minutes ago, BangkokReady said:

Aren't those countries experiencing economic collapse and actual war?  I would have thought that these were more important issues to show sympathy for. ????

Also thought strange those 2 were mentioned, as more than just inflation going on there.

 

Notice author states lives here / TH, and yet, few days ago, stated petrol was 52 baht ????

Hmm ... 

[renaissanc]

City life and countryside life do seem to be very different regarding food expenses when you can grow your own food, apart from rice, which is probably cheaper where we live than in a city. 3,700 Baht per week for food seems a lot to me. Most of that is processed food and chemical vegetables and fruit, I expect. If you have some land you can be self-sufficient regarding (chemical-free) fruit and vegetables, and water, which you can structure and store in large clay "ongs". We're adding chickens soon and later on a fish pond as we have 19 cats to look after. I couldn't live in a city again.

[Andycoops]

UK expats here are no different to the other 500 thousand who if non resident have their state pension frozen.

Essential to have a company/private pension that increases yearly with the CPI index.

The OP rises here seem disproportionate.

My recent spending is certainly up but only slightly.

[vandeventer]

1 hour ago, Orinoco said:

Some posters just don't understand Thai people.

There is nothing wrong going and paying the electric bill or rent for them if you feel the need, !!!!!!!!!

But to hand over cash , no way !!!!!!!!!!!!!!

Food and water, will go a long way, cash.

will be,  booze, cigs, gambling, party time.

And if you think the money will come back to you

when / if, the good times come, forget it.

Handing over cash to friends and family will just bring

resentment down the road.

But feel free to run your bank account down for them.

 

You could always ask yourself,  why they never plan for a rainy day ? answer, they care not about tomorrow, well tomorrow has just started to come.

and it will only get worse before better.

 

 

You are putting all Thai's in one basket, and  they are not all the same, and I am not saying give them all your money just help them if they need help in these bad times.

[KhunLA]

quoting the highest diesel price in an op-ed for petrol inflation equates to quoting wagyu beef price at Villa Markets as everyday beef price at fresh market.  Niche market customer vs every day consumers.