Thai Govt Acts To Soothe Price Fears

[webfact]

INFLATION

Govt acts to soothe price fears

The Nation

Blames inflation on flood effects

BANGKOK: -- The government yesterday acknowledged growing anxiety over the rising cost of living and the imminent increase in the minimum wage, but expressed confidence that Thailand's economic situation remained under control.

After an urgent meeting called by Prime Minister Yingluck Shinawatra, top economic officials said the Cabinet would monitor key factors, particularly oil prices and the new minimum wage. No economic, financial or monetary measures were announced.

The government played down the rise in fuel prices, pointing out that high inflation in January was largely caused by lost production in the aftermath of the flood crisis. The nationwide disaster severely affected manufacturing of goods, which failed to meet demand, resulting in higher prices of foods and beverages. The prices were within normal levels, however, officials said.

Amid the public outcry over rising food prices, Yingluck called an urgent meeting of economic ministers including the finance, commerce, labour and industry ministers, as well as officials from the Bank of Thailand and the National Economic and Social Development Board (NESDB), to brainstorm ways of tackling the high inflation.

Kittiratt Na-Ranong, deputy prime minister and finance minister, said the government was not overly worried about the prices of goods, but would closely monitor certain goods throughout their supply chains to identify problems. In addition, energy costs would be monitored.

The government has no policy to subsidise energy costs further, but will promote energy conservation among the public and all government agencies, he said.

"Prime Minister Yingluck has ordered all government agencies to reduce energy use by 10 per cent," Kittiratt said.

The government believes that prices of liquefied petroleum gas (LPG) and natural gas for vehicles (NGV) will come under control. The government will not implement any measures that will cause price increases, he said.

The BOT yesterday signalled that there would be no increase in the policy rate in the next six months, given stable inflation expectations.

"Inflation expectations remain stable as per the BOT's survey. Inflation is unlikely to be a serious problem in the next six months. There won't be a need for any broad-based measures," BOT Governor Prasarn Trairatvorakul said.

However, crude-oil prices and the effect of government measures such as the increase in the minimum wage and civil service salaries and other government expenses will be closely monitored, he said.

The Dubai crude-oil price has risen to about US$120 per barrel on tensions in the Middle East.

Commerce Minister Boonsong Teriyaphirom said the ministry's latest survey on goods prices on Tuesday showed that some fresh-food prices have declined from the same period last year. The cost of red pork has dropped from Bt99-Bt104 per kilogram last year to Bt80-Bt90 this year, and chicken fell from Bt59-Bt60 to Bt42-Bt44. However, the price of large and medium-sized lemons increased from Bt2.50-Bt3.00 to Bt3.90-Bt4.20 each this year.

He said rising oil prices would affect logistics costs by 0.44 per cent.

Prasarn attributed the recent spike in goods prices in part to inflation expectations based on the upward trend in oil prices due partly to geopolitical tension in the Middle East.

To keep inflation in check, the central bank will undertake periodic surveys on the inflation expectations of business operators and consumers, to see what they forecast for the next three, six and nine months. Prasarn noted that in anticipation of higher inflation, operators tended to raise product prices while consumers started to hoard.

"What worries us is the oil prices. Every 10-per-cent increase in the oil price boosts the Consumer Price Index by 0.3-0.4 of a percentage point. Inflation expectation is the culprit now," he said.

-- The Nation 2012-03-17

[OzMick]

"Prime Minister Yingluck has ordered all government agencies to reduce energy use by 10 per cent," Kittiratt said.

Most of the Public Service will end up in a coma.

[Pib]

Food prices are indeed rising...but the Bank of Thailand (BOT) basket of items they use to determine inflation does not capture all of this...it only captures most of the basic food price rises. Yes sir, whether a person buys their food at a noodle stand, a food court, a western-style fast food outlet, outdoor market, or at the the grocery store many food prices have climbed very significantly...especially for meat and fish....most food costs have risen significantly more than the overall 3% ballpark core inflation figure reported by the BOT. See the Feb 12 Consumer Price Index report for a breakout of various cost changes...be sure to look at the chart at the bottom of the report. Link

[SICHONSTEVE]

"Prime Minister Yingluck has ordered all government agencies to reduce energy use by 10 per cent," Kittiratt said.

Most of the Public Service will end up in a coma.

No more helicopter rides then as an excuse not to be present in government to answer questions, because she patently hasn't a clue about whats going on or what she's doing!!!!

[webfact]

PM says high consumer product prices resulted from last year's flood

BANGKOK, March 17 - Prime Minister Yingluck Shinawatra on Saturday said high consumer product prices were the result of the massive flood last year, and ordered the Commerce Ministry to speed up expansion of the "Blue Flag" programme to sell inexpensive consumer goods to help low-income earners.

The premier, on her weekly programme “Yingluck Government Meets the People," said that the flood crisis of last year was the major factor that caused high prices of consumer products.

She said that consumer goods prices were lower when compared with the same month last year but the flood had forced many factories to halt their operations, while many distribution centres could not deliver the products, eventually causing prices to increase as demand was much higher than the supply.

However, she expressed confidence that the high prices of food and consumer products would return to normal by June this year.

Ms Yingluck said she has ordered the Commerce Ministry to speed up the expansion of the "Blue Flag" programme to sell consumer goods at low prices assisting low-income earners, and expected every community to have one Blue Flag shop or stall starting this month.

The ministry of commerce and relevant offices would implement measures to ensure that prices of consumer goods were reasonable, particularly those of eggs and palm cooking oil, said the premier.

The prime minister said the government believed the rise of world oil prices would be only short term and would not intervene in domestic oil prices, but measures would be taken to ease the impact on the public. (MCOT online news)

-- TNA 2012-03-17

[SICHONSTEVE]

My god!!! she is a genious with her take on events as to 'why the prices of certain goods are high'.

Interesting to know how she is going to implement this 'stupid' "blue flag scheme". What is she to do - force people to sell their produce at unrealistically low prices whereby they don't make a profit??

I can recall only 1 'rediculous' and unworkable policy from the Democrat party and that is selling eggs be weight and not number!!! However, virtually every policy dished out by these morons is 'stupid beyond belief' - the kind of thing a 10 year old school boy with a vivid imagination would think up!!!

God help Thailand!!!!

Edited March 17, 2012 by SICHONSTEVE

[mic6ard]

High costs due to flood!!! But since you are also increasing wages all over the country, surely it'll offset the increase!! And look we are also DECREASING taxes for business to offset the increase wages.

Madam P.M. I think that you have lost the plot somewhere during the election campaign.

Fuels' going up, Foods' going up, wages' going up. But guess what, people don't think about the incoming money as much as expenditure.

BOT "inflation won't be a serious issue in the coming 6 months"!!! Where are you coming from??? Everything is costing more, so more THB to by the same stuff! Isn't that inflation???

Call me a 'Naysayer" but I can't see a silver lining or a light at the end of the tunner for this mess.

[mic6ard]

My god!!! she is a genious with her take on events as to 'why the prices of certain goods are high'.

Interesting to know how she is going to implement this 'stupid' "blue flag scheme". What is she to do - force people to sell their produce at unrealistically low prices whereby they don't make a profit??

I can recall only 1 'rediculous' and unworkable policy from the Democrat party and that is selling eggs be weight and not number!!! However, virtually every policy dished out by these morons is 'stupid beyond belief' - the kind of thing a 10 year old school boy with a vivid imagination would think up!!!

God help Thailand!!!!

[WackySomchai]

The pm headquarters in Dubai has ordered his parrott to call another meeting. No action talk only ...

[anterian]

I do most of my shopping at BigC, I pay by my SCB card which means my bank keeps a record. When I compare last year with this year I see no real change in my weekly expenditure. I have not cut back on anything so am rather puzzled by the fuss.

[SICHONSTEVE]

High costs due to flood!!! But since you are also increasing wages all over the country, surely it'll offset the increase!! And look we are also DECREASING taxes for business to offset the increase wages.

Madam P.M. I think that you have lost the plot somewhere during the election campaign.

Fuels' going up, Foods' going up, wages' going up. But guess what, people don't think about the incoming money as much as expenditure.

BOT "inflation won't be a serious issue in the coming 6 months"!!! Where are you coming from??? Everything is costing more, so more THB to by the same stuff! Isn't that inflation???

Call me a 'Naysayer" but I can't see a silver lining or a light at the end of the tunner for this mess.

I love their "gung ho" everythings gonna be alright attitude.

When they don't have an answer, its........Don't worry it will magically sort itself out and "this won't happen, well I didn't think it would, but I can guarantee 100% it won't get worse........well not much worse than it just has........OK starting from now!!!......Oh sod it!!!......who cares anyway - neeeext!!!!!

[OzMick]

Govt acts to soothe price fears.......... No economic, financial or monetary measures were announced.

A whole different meaning to "acts"

[Pib]

Boy oh boy, do I hear the Thai word for "expensive" much, much nowdays compared to a year or two ago. And prices on food menus have changed so much....that 20-40 baht plate of XYZ now costing 30-60 baht (or more)...and even the amount of noodles/meat balls in the bowl is getting smaller as the price goes up. Yes sir, the neighbors, in-laws, etc., sure use the word expensive nowdays in their day-to-day conversations. Farangs probably don't notice the price increase as much since as a plate of food going from 40 baht to 50 baht pobably seems small to them...but do the math...that's a 25% increase and really hurts the pocket book when trying to live on a typical Thai income.

[allan michaud]

"Prime Minister Yingluck has ordered all government agencies to reduce energy use by 10 per cent," Kittiratt said.

Urmmm just like that?

(actually, by my calculations it would only take a 20% cut to tea money to achieve)

[nong38]

Food prices are indeed rising...but the Bank of Thailand (BOT) basket of items they use to determine inflation does not capture all of this...it only captures most of the basic food price rises. Yes sir, whether a person buys their food at a noodle stand, a food court, a western-style fast food outlet, outdoor market, or at the the grocery store many food prices have climbed very significantly...especially for meat and fish....most food costs have risen significantly more than the overall 3% ballpark core inflation figure reported by the BOT. See the Feb 12 Consumer Price Index report for a breakout of various cost changes...be sure to look at the chart at the bottom of the report. Link

I would say its over 10% from what I see, well over maybe 20%, perhaps I am blind. They really dont seem to grasp the situation do thay. Edited March 17, 2012 by nong38

[bigbamboo]

"Prime Minister Yingluck has ordered all government agencies to reduce energy use by 10 per cent," Kittiratt said.

Most of the Public Service will end up in a coma.

Or ten per cent of government agency staff to be transferred to inactive posts, a.k.a. Swampy Immigration?

[MaiChai]

Erm, the inaction is deafing. Why doesn't the government do something? This is becoming the government who likes to spout alot but never really does anything useful? Guess they don't understand economics?

[hellodolly]

I do most of my shopping at BigC, I pay by my SCB card which means my bank keeps a record. When I compare last year with this year I see no real change in my weekly expenditure. I have not cut back on anything so am rather puzzled by the fuss.

I don't doubt what you say but were you able to buy the same products as last year?

[anterian]

I do most of my shopping at BigC, I pay by my SCB card which means my bank keeps a record. When I compare last year with this year I see no real change in my weekly expenditure. I have not cut back on anything so am rather puzzled by the fuss.

I don't doubt what you say but were you able to buy the same products as last year?

An interesting question, last year I actually mainly used Carrefour as they stocked most kinds of farang foods. When carrefour sold out to BigC and became BigC extra, many of these slowly vanished.

However a few weeks later BigC completely rebuilt itself and now stocks all my usual products. So my answer is yes apart from a brief hiccup during the takeover period.

Examples of what I buy, potatoes, carrots, onions, sweet peppers, tomatoes, lettuce, cabbage, pork, fish, milk, mature cheese, margarine, ham, wholemeal bread, macaroni, baked beans, coffee, whitener, sucralose, ovaltine. Plus cat food, cooking oil, detergent and toiletries.

This is for two adults and 8 cats, I usually get change out of two 1000 Baht notes. During the week I will probably spend a few hundred Baht extra at the local 7/11 and mobile street stalls, mainly on bread and milk.

So rounded up it costs me about 25 GBP to live here for a week, in the UK it costs me about three times that, over 70 GBP, so I am not complaining.

[SantiSuk]

When I can no longer buy 3 bundles of herbs/vegetables for 10 baht in the local markets that's when I know that inflation is really biting

Generally I'm surprised how little food proces have risen in the last 3 or 4 years. Eggs, beef (25% in 3 years), rice and seafood yes. Pork, chicken, fruit & vegetables and local fish, generally no increases.

[billd766]

Erm, the inaction is deafing. Why doesn't the government do something? This is becoming the government who likes to spout alot but never really does anything useful? Guess they don't understand economics?

Isn't that what PTP used to say about Abhisit when the Democrats were in power?

[koosdeboer]

I do most of my shopping at BigC, I pay by my SCB card which means my bank keeps a record. When I compare last year with this year I see no real change in my weekly expenditure. I have not cut back on anything so am rather puzzled by the fuss.

I don't doubt what you say but were you able to buy the same products as last year?

An interesting question, last year I actually mainly used Carrefour as they stocked most kinds of farang foods. When carrefour sold out to BigC and became BigC extra, many of these slowly vanished.

However a few weeks later BigC completely rebuilt itself and now stocks all my usual products. So my answer is yes apart from a brief hiccup during the takeover period.

Examples of what I buy, potatoes, carrots, onions, sweet peppers, tomatoes, lettuce, cabbage, pork, fish, milk, mature cheese, margarine, ham, wholemeal bread, macaroni, baked beans, coffee, whitener, sucralose, ovaltine. Plus cat food, cooking oil, detergent and toiletries.

This is for two adults and 8 cats, I usually get change out of two 1000 Baht notes. During the week I will probably spend a few hundred Baht extra at the local 7/11 and mobile street stalls, mainly on bread and milk.

So rounded up it costs me about 25 GBP to live here for a week, in the UK it costs me about three times that, over 70 GBP, so I am not complaining.

So you use your SCB card en get change out of two 1000 Baht notes? How do you do that?

The stuff you buy is not exactly the stuff the average Thai will buy. It's about the Thai not about your costs compared to the Uk.

My wife complains that the prices sometimes stay the same but the packages are getting smaller like birdie coffee. Before packages 30 gram now 27 gram for the same price.

[anterian]

I do most of my shopping at BigC, I pay by my SCB card which means my bank keeps a record. When I compare last year with this year I see no real change in my weekly expenditure. I have not cut back on anything so am rather puzzled by the fuss.

I don't doubt what you say but were you able to buy the same products as last year?

An interesting question, last year I actually mainly used Carrefour as they stocked most kinds of farang foods. When carrefour sold out to BigC and became BigC extra, many of these slowly vanished.

However a few weeks later BigC completely rebuilt itself and now stocks all my usual products. So my answer is yes apart from a brief hiccup during the takeover period.

Examples of what I buy, potatoes, carrots, onions, sweet peppers, tomatoes, lettuce, cabbage, pork, fish, milk, mature cheese, margarine, ham, wholemeal bread, macaroni, baked beans, coffee, whitener, sucralose, ovaltine. Plus cat food, cooking oil, detergent and toiletries.

This is for two adults and 8 cats, I usually get change out of two 1000 Baht notes. During the week I will probably spend a few hundred Baht extra at the local 7/11 and mobile street stalls, mainly on bread and milk.

So rounded up it costs me about 25 GBP to live here for a week, in the UK it costs me about three times that, over 70 GBP, so I am not complaining.

So you use your SCB card en get change out of two 1000 Baht notes? How do you do that?

The stuff you buy is not exactly the stuff the average Thai will buy. It's about the Thai not about your costs compared to the Uk.

My wife complains that the prices sometimes stay the same but the packages are getting smaller like birdie coffee. Before packages 30 gram now 27 gram for the same price.

It's a figure of speech, put in a Thai context. As to the stuff I buy it is more upmarket than your average Thai so is dearer, if I lived on fish balls, rice, eggs and Chinese kale life would be much cheaper, so what point are you trying to make?

[GentlemanJim]

Am I correct in saying that the minimum wage increase is not going to be across the board at the moment, but only in certain sectors? That is the kiss of death for the poor who are not scheduled on the wage increase. Prices will rise, leaving those with more wages wondering why they dont have any more money, and those who are not on the new wage rise, thinking bloody hell what are we going to do. Inflation will go up up up. Seems like a good time right now to short the baht.

Edited March 18, 2012 by GentlemanJim

[Pib]

When I can no longer buy 3 bundles of herbs/vegetables for 10 baht in the local markets that's when I know that inflation is really biting

Generally I'm surprised how little food proces have risen in the last 3 or 4 years. Eggs, beef (25% in 3 years), rice and seafood yes. Pork, chicken, fruit & vegetables and local fish, generally no increases.

Gosh, I need to move to your part of Thailand. According to the Bank of Thailand CPI release for Feb 12 just a one year increase from Feb 11 to Feb 12 for Meats, Poultry, Fish was 7.2%....and for the Meats only category 10.1%. Pork has DEFINITELY increased over the last two years. And Vegetables & Fruits was up 6.4% from Feb 11 to Feb 12.

Go to this BOT link to see more cost/inflation details. Link

And below is just a partial cut & paste image of the inflation details.

[Thai at Heart]

Shame they have to truck everything in trucks. They will reap the whirlwind of allowing the trucking lobby to run transport policy for 40 years

[Thai at Heart]

Shame they have to truck everything in trucks. They will reap the whirlwind of allowing the trucking lobby to run transport policy for 40 years

[Bagwan]

Govt acts to soothe price fears.......... No economic, financial or monetary measures were announced.

A whole different meaning to "acts"

No Acts from the Thaksin Apostles?

[Bagwan]

I do most of my shopping at BigC, I pay by my SCB card which means my bank keeps a record. When I compare last year with this year I see no real change in my weekly expenditure. I have not cut back on anything so am rather puzzled by the fuss.

I don't doubt what you say but were you able to buy the same products as last year?

An interesting question, last year I actually mainly used Carrefour as they stocked most kinds of farang foods. When carrefour sold out to BigC and became BigC extra, many of these slowly vanished.

However a few weeks later BigC completely rebuilt itself and now stocks all my usual products. So my answer is yes apart from a brief hiccup during the takeover period.

Examples of what I buy, potatoes, carrots, onions, sweet peppers, tomatoes, lettuce, cabbage, pork, fish, milk, mature cheese, margarine, ham, wholemeal bread, macaroni, baked beans, coffee, whitener, sucralose, ovaltine. Plus cat food, cooking oil, detergent and toiletries.

This is for two adults and 8 cats, I usually get change out of two 1000 Baht notes. During the week I will probably spend a few hundred Baht extra at the local 7/11 and mobile street stalls, mainly on bread and milk.

So rounded up it costs me about 25 GBP to live here for a week, in the UK it costs me about three times that, over 70 GBP, so I am not complaining.

Please, please tell me where you are changing GBP into baht.

[bigbamboo]

I do most of my shopping at BigC, I pay by my SCB card which means my bank keeps a record. When I compare last year with this year I see no real change in my weekly expenditure. I have not cut back on anything so am rather puzzled by the fuss.

The price of whisky and beer in unchanged!