Rising Prices

[Ricardo]

My week-end FT cost 95 Baht last year, and just went up to 110 Baht, a 15.8% increase for something which is imported, so actually ought to be cheaper, due to the strength of the Baht !

[damian5000]

I was looking in a recent SE Asia on a Shoestring the other day and there are 4 places listed in front as "THE 4 TOP PLACES YOU MUST SEE" (or some such other heading). Guess what one of them was....Yup..Chiang Mai.

They had HANOI listed too. Of all the fuc_king places on earth... Has to be THE worst place I've ever been in my 32 years... And I've been in some pretty shat places. The only redeeming thing is the water puppet show...The best $4 I ever spent. Well...erm...

But on topic.. I currently live in Mung Mai district next to Marina Hotel, and the woman who cooks food outside my girl's shop needs/wants to raise dishes by 5baht. Apparently due to cooking oil prices and other such price hikes that she has to pay. This is not a touristy area. Sometimes I go days without seeing a single Falang.

[Ulysses G.]

I lived in Hanoi for about 6 months in 1998. Didn't like living there, but thought it was a cool place to visit. Nice French buildings and all kinds of great food. Going up to Sapa was beautiful. Winters were too cold though.

[damian5000]

I lived in Hanoi for about 6 months in 1998. Didn't like living there, but thought it was a cool place to visit. Nice French buildings and all kinds of great food. Going up to Sapa was beautiful. Winters were too cold though.

I talked to this fellow on the bus ride back up to Chiang Mai and he said same as you...Hewas there about 10 years back and didn't find it so bad.

But things must of changed since then, because I've been in some poor places...But this place was just horrible. I mean from the second I stepped off the plane with the taxi driver telling me the ride was $10, that I had to pay him in dong, and $1 was 160,000 dong as well as the highway toll 300,000 dong... (they even had this fake little lamenated card they kept showing me trying to show that's what they paid) Of course as soon as I walked up to a closing western union and started to verify the dong, they changed their tune quick...

To sitting on a bench...turned my head for a second and then turned it back to find the present I had bought for my GF's kid had been stolen from right next to me while I was sitting there...After I saw corner of my bag sticking out of some tout's bag, I went over and questioned them about it and it turned into "hehe we play funny on you"...to motorbike drivers and postcard sellers following and nagging you for BLOCKS. The traffic was downright scary. Made Bangkok look like kitty land. Just a horrible place. I've been to some really poor areas of SE Asia, and it was absolutely nothing like Hanoi as far as how money grubbing and being downright dirty liers.

[Ulysses G.]

It was like that when I was there too, but I was pretty used to places like that at the time and took it in stride.

Also, living there, you learned to minimize azzhole exposure!

[Johpa]

For you Ahmerican ex-pats who have concerns about inflation, stay put in Chiang Mai as all this talk about recession is just a smoke screen to hide the impending major inflationary trends. As some of you know, January is the beginning of the major trade show season here in the US, jumping off with the CES show in early January. This is followed by a never-ending procession of trade shows, mostly in Las Vegas, that continues into March, covering just about every industry and sector. Business people like myself are just now getting our wholesale prices for the coming year as we place our seasonal order for next fall and winter and also to some extent orders for this summer. I am already getting advanced notice from a few of my wholesalers of price increases in the double-digit ranges up to 30%. I am also hearing similar stories from people involved in unrelated industries to my own. One story is that China has implemented a new VAT tax on exports, or rather extended the range of products that incur this tax. Thailand now also imports large quantities of consumer goods from the PRC, so I would expect to see some inflation within the Kingdom as well, although partially softened by the strength of the baat relative to the dollar.

[Donnyboy]

For you Ahmerican ex-pats who have concerns about inflation, stay put in Chiang Mai as all this talk about recession is just a smoke screen to hide the impending major inflationary trends. As some of you know, January is the beginning of the major trade show season here in the US, jumping off with the CES show in early January. This is followed by a never-ending procession of trade shows, mostly in Las Vegas, that continues into March, covering just about every industry and sector. Business people like myself are just now getting our wholesale prices for the coming year as we place our seasonal order for next fall and winter and also to some extent orders for this summer. I am already getting advanced notice from a few of my wholesalers of price increases in the double-digit ranges up to 30%. I am also hearing similar stories from people involved in unrelated industries to my own. One story is that China has implemented a new VAT tax on exports, or rather extended the range of products that incur this tax. Thailand now also imports large quantities of consumer goods from the PRC, so I would expect to see some inflation within the Kingdom as well, although partially softened by the strength of the baat relative to the dollar.

the Chinese yuan is also appreciating as well so a double whammy

Edited January 28, 2008 by Donnyboy

[adjan jb]

Petrol's up again

And we're down...

That's the theory of communicating vessels.

[bryuung]

I've noticed the importer for Black Label, Red Label and Hennessey has increased all their prices. Hennessey went way up, but with Red and Black Label the guy kept the same prices but reduced the amount down to 700ml, I can no longer find the 1 liter bottles. So now you pay the same price for a 700ml as you did for a 1 liter a few months ago!

[Mapguy]

Lifted from the 5 February edition of Chiang Mai Mail

Welcome to Chiang Mai FeMail - slightly smaller this week as the main story was pinched for the front page! Never mind… “Focus on food” seems to be this week’s theme, retail prices, wholesale prices, and the penalties of eating too much. But even government nutritionists seem not to want to mention alcohol in the same breath as obesity and poor health. Of course, we women know the score on that reluctance - so, wake up and smell the coffee, guys!

Food price inflation - the real reason?

Tess Itura

A few weeks ago, FeMail carried an article about the high rate of inflation of food prices - at present 12% - and the effect it might have on all of us, both Thai and farang. An article published in this week’s issue on page 4, describing the European Union and the World Trade Organisation’s problems with Thailand’s arbitrary upward revaluations of declared import invoice prices, may give a clue to why this is happening, particularly with “farang” foods, which are invariably imported. The WTO’s complaint, following some months of unsuccessful bilateral talks between the EU and the Thai authorities, is that Thailand’s actions breach WTO regulations, to which Thailand has signed up. This issue affects goods from the countries of the European Union, particularly foodstuffs, wines, etc, and has been a cause for concern since September 2006. The issue is simple, upward Customs revaluations of actual declared commodity prices attract higher import duties, leading to higher retail prices.

Interestingly, a shopping trip today to a major Chiang Mai supermarket, Carrefour, tended to confirm the thrust of the article, and provided an insight into how this practice is affecting stores across the Kingdom, as well as their customers. Searching for our usual brand of butter, sold last week at 47 baht per pack,(after a recent rise from 37 baht…) we were amazed and extremely annoyed to find that the stated price this week was - wait for it - 75 baht! As were all the other brands available, representing an increase of some 60%. Standing near the display was a representative of the supermarket, who, having overheard and obviously understood our disgusted and somewhat explicit comments, came over and spoke with us. After a pleasant but rather “to the point” conversation in English, the supermarket’s head office was called, and an explanation of the huge price increase was requested. Whilst we were waiting for head office to call back, another customer noticed the price increase and made it very clear to the world in general what she thought about it - in Thai! As she stomped away, pushing a trolley loaded with at least three weeks’ groceries, the words “and I shall never, ever shop in this store again” were heard…

At that point, I was beginning to remember the WTO article on page 4 - yes, it does occasionally help getting advance notice of what’s in the CM Mail this week - and, sure as sure is, when the information came in, its interpretation by the representative of the store was exactly what I had expected. The news got worse as it was explained to us that a number of other products had not been stocked for some time as the price increases were considered too much for customers to bear. Negotiations, we were given to understand, are continuing between international suppliers of affected products and Carrefour itself. We received the strong impression that the situation was going to deteriorate still further, and also begin to involve imported staple foods as well as “farang” foods. We were told that the store was concerned about low-waged Thai customers being seriously affected, which was, at least, good to hear. At the representative’s request, we filled in a complaints form to be sent to the head office, and were also invited to visit the store group’s website, where an email complaint/comment form is available. Carrefour has 25 stores around Thailand, and we also understand that other major supermarkets are in a similar position regarding this issue.

We would suggest that everyone who has internet access and is concerned about the implications of the above visits Carrefour’s website at www.carrefour.co.th and makes their views known by email. After the conversation with the representative of the stores, who has asked not to be named, we do have the feeling that Carrefour itself has recognised not only the threat to its business, but the potential problems that continued and basically government engineered price rises of this magnitude will cause to its customers, both Thai and farang.

[Greenside]

I guess that the bosses at Rimping must be sleeping uneasily right now given their high reliance on imported luxury farang type foods. Many of their expat customers, already squeezed by currency pressures, must be wondering if those "native foods" might not be just as good for breakfast and once lost it's tough to get people back.

[Austhaied]

Dave at the Dukes has said that nearly everything has risen by 20-30% recently.

My wife is complaining of the same increases.

Worst of all is Tesco Lotut has raised the price of their breadsticks / baugettes from 18 baht to 25 baht..

Whats the world coming to ???

[Maejo Man]

Talking of price rises.....My maid asked for a increase in salary this morning. I gently explained to her that courtesy of the Thai government and the current exchange rate, she had already had it!! She left with a somewhat bewildered expression on her face, muttering something about Thaksin

[Ulysses G.]

I heard that the Duke's prices will go up considerably unless he wins the TV best burger poll.

[Austhaied]

I heard that the Duke's prices will go up considerably unless he wins the TV best burger poll.

The new menu is already on the drawing board..and yes his burgers ( particularly the bacon and blue cheese one) are very nice indeed..

[Ulysses G.]

I think that he is looking more for actual votes, rather than recomendations.

[cmsally]

It's not only farang food.

20 litres of rice yesterday cost 400Bt.

Before it cost 350Bt

There was an article on BBC website yesterday about Vietnam not having enough to export and countries looking to Thailand for their rice more and more.

Thai Rice

[Austhaied]

I think that he is looking more for actual votes, rather than recomendations.

I'm sure Dave is hanging on every word of "the hamburger thread"...Not..

[Greenside]

This is hurting! Today my favorite gai yang place raised its price from 17 bht from 15 baht (doesn't sound like much but that's 13%) and Pizzamania, my new local source for high fat meals, upped their tasty ham and mushroom pizza a whacking 17.6% to 200 bht.

Ouch.

[tigerbeer]

Carrefour

Butter February 2008 - 42Baht

Butter This morning - 75Baht.

[PeaceBlondie]

Butter is apparently now even more of a luxury item than it was a few months ago. Is there a Thai equivalent to margarine or oleo?

[tigerbeer]

Butter is apparently now even more of a luxury item than it was a few months ago. Is there a Thai equivalent to margarine or oleo?

margarine? planta perhaps. palm oil stuff which is also rising in cost

[KevinHunt]

This is hurting! Today my favorite gai yang place raised its price from 17 bht from 15 baht (doesn't sound like much but that's 13%) and Pizzamania, my new local source for high fat meals, upped their tasty ham and mushroom pizza a whacking 17.6% to 200 bht.

Ouch.

Percentages are useful occasionally, but if a meal goes from 15 to 17 baht, that is still dirt cheap and just a 2 baht increase. The 13% is irrelevant if it is already cheap. If your pizza goes from 200 to 225 that is a lot more relevant because your food costs just went up by 25 baht. It is still 13% but 25 baht instead of 2 baht. The price increase on the pizza (25b) was 1250 percent more than the price increase on the cheaper meal (2b) in terms of amount.

I'm not a big fan of 'percentages'.

[PeaceBlondie]

Percentages are useful occasionally, but if a meal goes from 15 to 17 baht, that is still dirt cheap and just a 2 baht increase. The 13% is irrelevant if it is already cheap. If your pizza goes from 200 to 225 that is a lot more relevant because your food costs just went up by 25 baht. It is still 13% but 25 baht instead of 2 baht. The price increase on the pizza (25b) was 1250 percent more than the price increase on the cheaper meal (2b) in terms of amount.

I'm not a big fan of 'percentages'.

When you talk about price increases, percentages matter a lot. 2 baht here, 31 baht there, and before you know it, you are talking about real money. It is important to keep the big ticket items way down or never bought. I have not paid over 8K baht/month for housing in Thailand, but the most in Mexico was 3000 (1000 pesos).

Look how long your monthly bill would be if you kept them: an aparagus here, a brocoli there, here a donut, there a little pack of Lay's crisps. Each baht adds up.

[tigerbeer]

with rising prices, demand has to drop? things like butter lets say. there are alternatives to butter. as far i remember Keynesian economy, demand subsides and prices should drop. never been the case or am i missing something?

[slapout]

Get someone with land within 15 km of downtown (5 to 10 rai) Set up the old hippy farm, everyone come, work in garden, plant what you like, share with others, etc I will open a small beer bar under a shade tree, self serve, put money in jar. We can show these big markets who raise prices that we just will not stand for it. Butter is not normally on Thai menu, so this is a gotcha thing, hel_l they didnt eat or drink dairy products until recently. Most of the older men in villages would be up in arms if local whiskey went up 20%, or make their own. The good thing is I have not noticed bars raising prices for drinks for quite some time, food yes, but beer seems to be transported by genies as no transport increase. Saying that I am afraid to go into town tomorrow. A beer gives the same food value as a bowl of noodles, sounds good to me.

[realthaideal]

Last night as I finished up a good chow session at Chumpae Hmu Gattah right across from Jaeng Sri Phum they were busy plastering a new vinyl sign over the old one so that the price is now 130 B, not 120 B. I got in just in the nick of time. It used to be 89 B when I first came here, but that's a few yrs back, and didn't include the shrimp n scallop grill options. No doubt this is to compete with all the other Gung Gattah places around town. Their prices have been inching upward 10 baht here n there in the last year anyway.

Then last week I was at SriChai Khao Soi/ Khao Man Gai on the upper corner there at 3 Kings Monument. I had just missed the hike which happened at close the day before, bringing their tasty Kaho Soi up to 30 B/ bowl. Just 5 B there.

[KevinHunt]

I remember when conversations about the price of wet fish were only the concern of old women.

Men only concerned themselves with the price of their smokes and a pint of ale.

How times change. I had a customer who could quote the price differences between soap powder, toothpaste, yoghurt and just about everything else at Big C compared to Tesco . And that was a bloke!!!!

I think the first statement still holds true - metaphorically speaking, of course.

[mobile69]

I had a customer who could quote the price differences between soap powder, toothpaste, yoghurt and just about everything else at Big C compared to Tesco . And that was a bloke!!!!

What about Carrefour? Sometimes beats the pair of them.......

btw, off topic, but <deleted> has happened to Carrefour?

[Greenside]

btw, off topic, but <deleted> has happened to Carrefour?

New layout obviously but you're right, they've managed to do something quite disturbing to the whole store that (I think) has to do with the ceiling or the height of the fixtures or maybe the lighting. It's very disorientating and, to my mind, not an improvement (anyone out there read "Why We Buy"?). And while we're off topic is anybody else driven to run from the store when the awful woman in Cold Meats or the noodle counter starts shouting into a low quality headset without pause for breath for about ten minutes at a time? Can anyone respond to that kind of sales technique? It almost gets me as much as the dreadful ad they play over and over again in Tesco with what sounds like a kid saying something that sounds like "forgive me for live-ing". Aaargh

To someone earlier up the thread who pointed out that the percentage figure for a 2 bht increase in my bit of chicken is not a valuable statistic since the item itself is so cheap, I think quoting percentages is handy because it does give one a feel for the overall consequence of all these little increases and when I started the thread I imagined it might be interesting to look back on.

That's my 2 bht (100%) worth, anyway.