Tax on the poor?: What's the cause of USA inflation?

[Purdey]

Want to go back to the good old days?

[Lacessit]

18 minutes ago, Sheryl said:

AFAIK the inflation has not been unique to the US, but rather has occurred pretty much everywhere. Certainly has in UK. And in Thailand.

 

So looking for US specific causes may be a mistake.

 

As near as I can tell, prices soared during  and immediately after COVID due to supply chain problems/bottlenecks followed by a spike in fuel prices initially after start of the war in Ukraine.

 

However after these factors resolved, prices either failed to come down, or came down only slightly.  Presumably because key actors felt that why charge less once people were already paying more.

 

incidentally inflation rates in US have slowed considerably.  https://ycharts.com/indicators/us_inflation_rate.  Peak inflation was in 2022 - due ot exactly the factors mentioned above, and happening worldwide.  But a slowing of inflation rates, even to below normal average rates, is not the same thing as prices dropping back to what they once were. It just means they stop going further up rapidly.

I agree inflation is common in the Western world. However, what makes you think Thailand has inflation?

 

Rents are going through the roof in Australia. They are the same for condos in Chiang Mai and Chiang Rai as they were 4 years ago. Ownership is the same cost as ten years ago. If anything, prices are depressed a little.

 

Certainly, imported foods have spiked. However, I can't say any of the meat, fruit, vegetables and eggs I buy in local day markets or at Makro have changed so much it has impacted my monthly budget.

[Sheryl]

25 minutes ago, Lacessit said:

I agree inflation is common in the Western world. However, what makes you think Thailand has inflation?

 

Rents are going through the roof in Australia. They are the same for condos in Chiang Mai and Chiang Rai as they were 4 years ago. Ownership is the same cost as ten years ago. If anything, prices are depressed a little.

 

Certainly, imported foods have spiked. However, I can't say any of the meat, fruit, vegetables and eggs I buy in local day markets or at Makro have changed so much it has impacted my monthly budget.

Market food prices have greatly increased.  Both for fresh food and for the prepared food in little baggies.  Of course they remain comparatively low by we4stern standards, but they are significantly higher than before.

 

Pre-Covid, most plastic baggies of prepared foods in my local market were 20 baht. Now 30 or 35. Egg prices are now the highest on record, though sellers have offset this by often selling only smaller sized eggs  https://www.bangkokpost.com/business/general/2589810/egg-prices-at-new-high

 

It doesn't affect my personal budget noticeably either, because local foods comprise such a small proportion of my costs. But if you talk to Thais and migrant workers living on much lower incomes, they feel it a lot.

 

As in the US, inflation in Thailand peaked in 2022 (was over 6% for that year).  From Dec 2023 - March 2024 there was some small drop in prices then inflation resumed at levels that are now averaging around 1% a month. The small drop occurring during those 4 months did nto remotely bring prices back to pre-2022 levels

https://tradingeconomics.com/thailand/inflation-cpi

(click on either 3 yr or 5 yr on that link to see clearly)

 

 

[GammaGlobulin]

39 minutes ago, Purdey said:

Want to go back to the good old days?

 

Yes.

I would.

But how?

 

[Lacessit]

45 minutes ago, Sheryl said:

Market food prices have greatly increased.  Both for fresh food and for the prepared food in little baggies.  Of course they remain comparatively low by we4stern standards, but they are significantly higher than before.

 

Pre-Covid, most plastic baggies of prepared foods in my local market were 20 baht. Now 30 or 35. Egg prices are now the highest on record, though sellers have offset this by often selling only smaller sized eggs  https://www.bangkokpost.com/business/general/2589810/egg-prices-at-new-high

 

It doesn't affect my personal budget noticeably either, because local foods comprise such a small proportion of my costs. But if you talk to Thais and migrant workers living on much lower incomes, they feel it a lot.

 

As in the US, inflation in Thailand peaked in 2022 (was over 6% for that year).  From Dec 2023 - March 2024 there was some small drop in prices then inflation resumed at levels that are now averaging around 1% a month. The small drop occurring during those 4 months did nto remotely bring prices back to pre-2022 levels

https://tradingeconomics.com/thailand/inflation-cpi

(click on either 3 yr or 5 yr on that link to see clearly)

 

 

Are you misreading the link, Sheryl? It says the ANNUAL inflation rate for 2024 is about 1%, not per month. It's a bit confusing because the bar chart seems to be saying the opposite to what is in the text.

 

The price of a cooked pad siew gai is 50 baht, like it has been for four years. My massage lady still charges 150 baht/hour.

 

Granted migrant workers and Thais on the edge of poverty may notice the difference.

 

An increase of 5 baht for 30 eggs costing 140 baht I don't even notice, so we should count ourselves lucky  we are in the Land of Smiles.

 

Happy New Year, and may you have many more of them.