Thai Govt Price Claims Ignore Key Goods

[webfact]

Govt price claims ignore key goods

PETCHANET PRATRUANGKRAI,

KWANCHAI RUNGFAPAISARN

THE NATION

BANGKOK: -- Amid growing complaints from consumers over the rising cost of goods, the Commerce Ministry has insisted that prices are under control, but only part of the truth has been reported to the Cabinet and the public.

In fact, the government has picked only some products whose prices have come down to showcase to society.

Prime Minister Yingluck Shinawatra and Commerce Minister Boonsong Teriyaphirom keep on saying that prices are under control and the cost of living has not risen during this administration.

However, the prices of almost all of the consumer goods that have not been reported to the Cabinet have continued to increase during this government's term. The retail prices of daily necessities such as shampoo, liquid dishwashing detergent, soap, laundry detergent and foods are 5-10 per cent higher than at the same time last year.

Recently, The Nation surveyed cooked food prices and found they had gone up from an average of Bt25-Bt35 per dish to Bt30-Bt45. Although the government asked some retailers to sell cheap cooked food at Bt25-Bt30 per dish, the move failed to rein in rocketing daily expenses.

Despite the launch of price control measures by the ministry, suppliers of most essential goods have been hiking retail prices since last year.

Some companies cannot adjust their retail prices because their |products are considered as staples and have been put on the government's price control list. However, the survey found that those com-panies have shifted to producing more value-added products or changing formulas to allow them to lift retail prices above the ceiling. Some packages have also been downsized.

For instance, the contents of a |bag of liquid dishwashing deter-|gent have been decreased gradually from 600-650cc to 500-550cc. The production of ordinary formula shampoos and soaps has been cut back, while new formulas have been created and promoted to attract consumers.

Boonchai Chokwatana, chairman of Saha Pathanapibul, a leading local manufacturing and trading conglomerate, said the company eventually will need to raise prices as it is facing cost pressures from petrol, wages and raw materials.

"The increase in the petrol price has severely impacted the company in the form of rising costs of imported raw materials and transportation. We however have delayed price increases while our raw material stocks last, which will be for two more months," he said.

When the government in-|creased the minimum wage at the beginning of this month, it added about Bt1 billion to the personnel expenses of Saha Group, which employs more than 100,000 people in total.

Labour-intensive manufacturers, such as footwear makers, have been severely impacted by the new minimum wage.

"Some of Saha Group's manufacturing businesses, which are labour-intensive, such as footwear, have been impacted by the new wage. It has caused them to be non-competitive in export markets," he said.

However, some products, such as laundry and liquid dishwashing detergents, which rely more on automated machinery in their production process, have been less impacted by the new wage.

Saha and other manufacturers have been asked by the govern-|ment to maintain prices since last year, but manufacturers have been forced to adjust their prices to cope with the new cost structure. Some |of them have also reduced product sizes to maintain current prices and to be competitive in the market, he added.

Nophadol Siwabutr, corporate affairs director for Nestle (Thai), said price increases are the company's last option when facing cost pressures, which is why, even during the extreme shortages of bottled water caused by the great flood of last year, Nestle imported bottles from its plants in other countries and sold them at the same price as its local products, and absorbed all the extra costs.

"Looking ahead to the immediate future, Nestle has no plans to increase the costs of our products as a result of the new minimum wage," he said.

The Commerce Ministry's Internal Trade Department has estimated that the retail prices of goods should not increase substantially. It said that the increases in fuel and NGV prices will only boost the retail prices of goods by 0.44 per cent. The increase in the minimum wage to Bt300 per day will account for only 1-5 per cent of total production costs. This should not be a major factor for retailers to raise prices (see Chart 1).

The ministry has reported on only the prices of 12 products, mainly fresh foods, saying they declined last month year on year.

The products with prices reported to the Cabinet were pork, chicken, eggs, morning glory, bitter gourds, tamarind, garlic, beans, Chinese cabbages, cucumbers, limes and cooking oil. It was reported that the retail prices of most products dropped by 3.93-53.45 per cent from March of last year to this March. Only one product was reported as gaining in price. That was lime, which became 30.3 per cent dearer over the period.

-- The Nation 2012-04-09

[JeffreyMcCollum]

First the government tells us price have not gone up

The next week they tell us the minimum wage must go up to keep up with inflation

The third week, the government spends millions of tax payers baht to help increase the cost of pineapple by buying up surplus

Edited April 9, 2012 by metisdead
Bold font removed, again!

[rakman]

"Saha and other manufacturers have been asked by the govern-|ment to maintain prices since last year,..."

Government price controls will only make the situation worse. Why do people think that a few "smart" people in the government are more intelligent than the millions of people who make up the market place?

[Ricardo]

There are lies, dam_n-lies and PTP-led government-statistics !

[Pib]

Prime Minister Yingluck Shinawatra and Commerce Minister Boonsong Teriyaphirom keep on saying that prices are under control and the cost of living has not risen during this administration.

Some one needs to get a grip on reality. Consumer prices have been rising at a fast past all of last year and this year (i.e., before and during the current govt). While any govt likes to quote the core consumer price index, which excludes raw foods and energy, since it's a lower number many things like food prepared at/away from home, vegetables & fruits, meats, electricity/fuel/water costs, etc., have been rising at around a 10% clip per year on a country-wide basis. Sure, depending on where you live in Thailand and what you consume (like living on Chang beer only) a person may not have seen such prices rises, but the great majority of folks have seen very significant price rises. I've never heard my neighbors and in-laws complain so much about higher prices in all the years I've known them....I can understand why...it's easy to see the fast rising costs. And for some items which have not increased in price, it seems they are just making the package contents/serving size smaller to avoid raising the price...in a round about way that is still a price increase since you may need to by more to equal what you got before. Heck, years back you might not be able to finish a bowl of noodles due to its size; now it's not uncommon to order two bowls to fill up the stomach since the bowl contents is less.

See this Mar 12 Bank of Thailand consumer price index report for Mar 12...be sure to look at the last two columns which shows the price changes from Mar 11 to Mar 12 and from the first quarter of last year compared to the first quarter of this year.. As far as I know the current govt was in power for the whole quarter of Jan-Mar 12. And anyone who things this basket of goods used by the Bank of Thailand to track consumer prices covers all the products and services a person buys needs to also get a grip on reality.

[h90]

Prime Minister Yingluck Shinawatra and Commerce Minister Boonsong Teriyaphirom keep on saying that prices are under control and the cost of living has not risen during this administration.

Some one needs to get a grip on reality. Consumer prices have been rising at a fast past all of last year and this year (i.e., before and during the current govt). While any govt likes to quote the core consumer price index, which excludes raw foods and energy, since it's a lower number many things like food prepared at/away from home, vegetables & fruits, meats, electricity/fuel/water costs, etc., have been rising at around a 10% clip per year on a country-wide basis. Sure, depending on where you live in Thailand and what you consume (like living on Chang beer only) a person may not have seen such prices rises, but the great majority of folks have seen very significant price rises. I've never heard my neighbors and in-laws complain so much about higher prices in all the years I've known them....I can understand why...it's easy to see the fast rising costs. And for some items which have not increased in price, it seems they are just making the package contents/serving size smaller to avoid raising the price...in a round about way that is still a price increase since you may need to by more to equal what you got before. Heck, years back you might not be able to finish a bowl of noodles due to its size; now it's not uncommon to order two bowls to fill up the stomach since the bowl contents is less.

See this Mar 12 Bank of Thailand consumer price index report for Mar 12...be sure to look at the last two columns which shows the price changes from Mar 11 to Mar 12 and from the first quarter of last year compared to the first quarter of this year.. As far as I know the current govt was in power for the whole quarter of Jan-Mar 12. And anyone who things this basket of goods used by the Bank of Thailand to track consumer prices covers all the products and services a person buys needs to also get a grip on reality.

You only need to put enough Smart-Phones and RAM prices in the statistic and you'll see everything gets cheaper :-)

They do that in the west as well. bread may cost double but 512 MB Ram got very cheap.

[drdoom6996]

The government tells us exactly what they want us to hear. The only time you can tell when this government is trying to cover something up is when their mouths are moving. Of course some things go up in price and others go down in price. My suggestion would be to be you own buyer and price checker of everything. Check prices and buy what is necessary. Seems simple, but this government wants us to think they are smarter than all of us. When in reality they are the same crooks elected in July last year. Most people in this country that can read this would consider it, NO NEWS AT ALL. Seems to be the way of things on Thai Visa lately.

[exeter]

I like my Ram 512 fried with Goong!

The Govt is giving the "nod" for fuel to keep rising and thats hits everyone esp the poor, it also helps increase govt revenues. The only way to keep food prices down is to give smaller portions, but you cannot do that forever. The Govt should understand the real world for people but they are selective in what they include, they are not alone all govts play it the same way, why do they think ordinary people whether they are poor or not so do not understand what is going on?

[Thai at Heart]

Cue shops having a shortage of products in the next couple of weeks claiming that the exporters won't deliver because export prices are higher than domestic, thus begging the government to push up the domestic "top" price.

Why they subsidise/cap sugar is absolutely beyond me, but I was reliably informed by a enormous egg producer that with increases in costs against set market prices, his most profitable product at the moment is the chicken manure he is turning into fertiliser.

Edited April 9, 2012 by Thai at Heart

[hellodolly]

Easy to cherry pick items where the prices have gone down.

Just quote the prices when the product was in it's peak season and compare it to when it was out of season.

Just goes to show you how easy their supporters are led.

[BigJohnnyBKK]

Isn 't there an objective "basket of goods" measurement of price change here as there is in every other civilized nation?

I'm sure that international organizations have their own tools for comparing national inflation rates, even if the Thai government is able to manipulate its own measurements.

[allan michaud]

So where are the Red fan boys on this post? where are the comments to back up PT in their continuing efforts to destroy the Thai economy.

I have yet to see even one sensible, well thought out idea for ANYTHING by PT. I am no fan of the Democrats and the thieving HiSo's but at least they seemed to have some idea how an economy works. These muppets are clueless.

[hellodolly]

So where are the Red fan boys on this post? where are the comments to back up PT in their continuing efforts to destroy the Thai economy.

I have yet to see even one sensible, well thought out idea for ANYTHING by PT. I am no fan of the Democrats and the thieving HiSo's but at least they seemed to have some idea how an economy works. These muppets are clueless.

The red fan boys are out looking for extra work to pay for the high cost of living and don't have time to deny it is happening.

[siampolee]

the way it's going I wouldn't be at all surprised to see a re-run of these as remembered from my young days in the U.K.

Just imagine having to wave one of these prior to re-fulling your Beemer.

Or one of these whilst shopping in your local superstore.

Edited April 9, 2012 by siampolee

[siampolee]

The red fan boys are out looking for extra work to pay for the high cost of living and don't have time to deny it is happening.

Seems as if the price of an excursion to worship their leader has caused the Red Boys to seek part time work.

Edited April 9, 2012 by siampolee

[Dekchaimong]

You can gauge the rate of inflation here quite simply - and no, it is not a joke.

All of you long term ex pats - just take a look at one single food item - A can of Tuna in oil!

When I first came here in 2004, a can of Tuna was 8 Baht, the same can of Tuna today is 34 Baht, more than 300% increase in 8 years!

You don't need to be a mathematician to work that one out, more than 30% inflation per year.

[anterian]

Calculating cost of living changes based on a basket of indicators has always seemed a sad reflection on modern society. Many basic foods are seasonal, yes by eating expensive imported foods you can eat cabbages and carrots all through the year, but there are always alternatives. Most Thais are actually quite conservative in their diets, they have allowed themselves to become dependent on a limited range of foods, particularly poor Thais. Thus when there is a price increase in these "basic" foods they can visualise no alternatives.

[remobb]

Shame they don't have price control on imported food.

Last week;

biscuits I buy 80baht

This week; 120baht

last week;

HP sauce 90baht

This week; 130baht

Mars bars and Snickers are much smaller.

But only a few to mention.

Buy my frozen pizzas, ready cooked so can eat them cold or hot prices do not change.

Just doing my bit to help.

[anterian]

You can gauge the rate of inflation here quite simply - and no, it is not a joke.

All of you long term ex pats - just take a look at one single food item - A can of Tuna in oil!

When I first came here in 2004, a can of Tuna was 8 Baht, the same can of Tuna today is 34 Baht, more than 300% increase in 8 years!

You don't need to be a mathematician to work that one out, more than 30% inflation per year.

Now go to ASDA or Tesco and do the same. Actually tuna is a bad example, part of the increase is due to rapidly depleting stocks.

A better indicator would be a can of baked beans. Even better, try cat biscuits ( a stable customer base and no limit on raw materials).

[OzMick]

Calculating cost of living changes based on a basket of indicators has always seemed a sad reflection on modern society. Many basic foods are seasonal, yes by eating expensive imported foods you can eat cabbages and carrots all through the year, but there are always alternatives. Most Thais are actually quite conservative in their diets, they have allowed themselves to become dependent on a limited range of foods, particularly poor Thais. Thus when there is a price increase in these "basic" foods they can visualise no alternatives.

Are you saying that the rising cost of living is the fault of the public for buying the wrong food? Should we all live on pineapples for the next month to help PTP claims?

[OzMick]

You can gauge the rate of inflation here quite simply - and no, it is not a joke.

All of you long term ex pats - just take a look at one single food item - A can of Tuna in oil!

When I first came here in 2004, a can of Tuna was 8 Baht, the same can of Tuna today is 34 Baht, more than 300% increase in 8 years!

You don't need to be a mathematician to work that one out, more than 30% inflation per year.

Now go to ASDA or Tesco and do the same. Actually tuna is a bad example, part of the increase is due to rapidly depleting stocks.

A better indicator would be a can of baked beans. Even better, try cat biscuits ( a stable customer base and no limit on raw materials).

The AYAM brand baked beans (the only brand I have seen locally) are imported from Malaysia. I tried the cat biscuits, but they were too fishy. Dog kibble is tastier, but I get an overwhelming desire to lick my scrotum.

[how241]

The USA gov't also plays lots of "games" with their numbers. Standard practice.

[Thai at Heart]

Well, something is going to have to give. Inflate and devalue the baht, pay for higher petrol and imports. Seems like the humble Thai is going to pay to keep exporters in business.

[JohnAllan]

Government price and inflation claims have been less than accurate for years. The 20%, 30%, 40%, and more, increases seen for a variety goods, and in a variety of stores, demonstrate a total disconnect from reality.

[anterian]

Calculating cost of living changes based on a basket of indicators has always seemed a sad reflection on modern society. Many basic foods are seasonal, yes by eating expensive imported foods you can eat cabbages and carrots all through the year, but there are always alternatives. Most Thais are actually quite conservative in their diets, they have allowed themselves to become dependent on a limited range of foods, particularly poor Thais. Thus when there is a price increase in these "basic" foods they can visualise no alternatives.

Are you saying that the rising cost of living is the fault of the public for buying the wrong food? Should we all live on pineapples for the next month to help PTP claims?

No, what I am saying is that by diversifying your diet you can go a fair way towards offsetting rising costs, and incidentally improving your health.

[anterian]

You can gauge the rate of inflation here quite simply - and no, it is not a joke.

All of you long term ex pats - just take a look at one single food item - A can of Tuna in oil!

When I first came here in 2004, a can of Tuna was 8 Baht, the same can of Tuna today is 34 Baht, more than 300% increase in 8 years!

You don't need to be a mathematician to work that one out, more than 30% inflation per year.

Now go to ASDA or Tesco and do the same. Actually tuna is a bad example, part of the increase is due to rapidly depleting stocks.

A better indicator would be a can of baked beans. Even better, try cat biscuits ( a stable customer base and no limit on raw materials).

The AYAM brand baked beans (the only brand I have seen locally) are imported from Malaysia. I tried the cat biscuits, but they were too fishy. Dog kibble is tastier, but I get an overwhelming desire to lick my scrotum.

I actually meant in England, where they have gone from 6p per tin to 35p per tin.

Incidentally licking you scrotum is a lesser problem compared with trying to copulate with all your buddies.

[edwinchester]

You can gauge the rate of inflation here quite simply - and no, it is not a joke.

All of you long term ex pats - just take a look at one single food item - A can of Tuna in oil!

When I first came here in 2004, a can of Tuna was 8 Baht, the same can of Tuna today is 34 Baht, more than 300% increase in 8 years!

You don't need to be a mathematician to work that one out, more than 30% inflation per year.

8 bht to 34 bht over 8 years is slightly less than 20% inflation per year.

Posted with Thaivisa App http://apps.thaivisa.com

[bigbamboo]

You can gauge the rate of inflation here quite simply - and no, it is not a joke.

All of you long term ex pats - just take a look at one single food item - A can of Tuna in oil!

When I first came here in 2004, a can of Tuna was 8 Baht, the same can of Tuna today is 34 Baht, more than 300% increase in 8 years!

You don't need to be a mathematician to work that one out, more than 30% inflation per year.

Now go to ASDA or Tesco and do the same. Actually tuna is a bad example, part of the increase is due to rapidly depleting stocks.

A better indicator would be a can of baked beans. Even better, try cat biscuits ( a stable customer base and no limit on raw materials).

The AYAM brand baked beans (the only brand I have seen locally) are imported from Malaysia. I tried the cat biscuits, but they were too fishy. Dog kibble is tastier, but I get an overwhelming desire to lick my scrotum.

Well just so long as it's yours!

OK, so whilst any average Thai will tell you most essentials have risen considerably over the past year they should also remember the price of a new Benz has fallen.

Edited April 9, 2012 by bigbamboo

[osiboy]

You can gauge the rate of inflation here quite simply - and no, it is not a joke.

All of you long term ex pats - just take a look at one single food item - A can of Tuna in oil!

When I first came here in 2004, a can of Tuna was 8 Baht, the same can of Tuna today is 34 Baht, more than 300% increase in 8 years!

You don't need to be a mathematician to work that one out, more than 30% inflation per year.

Now go to ASDA or Tesco and do the same. Actually tuna is a bad example, part of the increase is due to rapidly depleting stocks.

A better indicator would be a can of baked beans. Even better, try cat biscuits ( a stable customer base and no limit on raw materials).

before returning here last month i bought 4 tins of branston BBs in asda for £1, and i actually think they are now the best, at least on a par with heinze , .... thats about 12b per tin ? ....ok it was a special offer but they have been around at this price for about 2+ yrs now, if you ever see "brooks" BBs in thailand give them a try, much better than those ayam , and i would rather have £40 in tescos in the UK than 2000b in a thai tescos , ...........2 lumps of cheese , chocky biscuits a bottle of wine and butter will knock you for half of it !! , not to mention spuds/orange juice/cake,...................i feel sorry for thais having to pay such crazy import tarrifs , .....how is orange juice cheaper in the uk ???????......mkj !, last year while shopping in tesco in rayong, i saw some frozen ready meals with a price of £1.99, it was marked up in thai Baht for 2.59B !

Edited April 9, 2012 by osiboy

[edwinchester]

You can gauge the rate of inflation here quite simply - and no, it is not a joke.

All of you long term ex pats - just take a look at one single food item - A can of Tuna in oil!

When I first came here in 2004, a can of Tuna was 8 Baht, the same can of Tuna today is 34 Baht, more than 300% increase in 8 years!

You don't need to be a mathematician to work that one out, more than 30% inflation per year.

Now go to ASDA or Tesco and do the same. Actually tuna is a bad example, part of the increase is due to rapidly depleting stocks.

A better indicator would be a can of baked beans. Even better, try cat biscuits ( a stable customer base and no limit on raw materials).

before returning here last month i bought 4 tins of branston BBs in asda for £1, and i actually think they are now the best, at least on a par with heinze , .... thats about 12b per tin ? ....ok it was a special offer but they have been around at this price for about 2+ yrs now, if you ever see "brooks" BBs in thailand give them a try, much better than those ayam , and i would rather have £40 in tescos in the UK than 2000b in a thai tescos , ...........2 lumps of cheese , chocky biscuits a bottle of wine and butter will knock you for half of it !! , not to mention spuds/orange juice/cake,...................i feel sorry for thais having to pay such crazy import tarrifs , .....how is orange juice cheaper in the uk ???????......mkj !

I doubt your average Thai is eating lumps of cheddar, chocolate hob nobs, drinking riesling, frying up chips from king edwards and supping tropicana to wash down their cherry madeira cake. Only expats give a toss about import tariffs on food.

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