Snake on side of road On Nut

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INFLATION

Inflation expected to come in at a low 3-3.1% this year

Petchanet Pratruangkrai

The Nation

BANGKOK: -- Inflation will remain benign at only 3-3.1 per cent for the entire year - at the bottom of the expected range of 3-3.4 per cent - thanks to stability in both the economy and goods prices, the Commerce Ministry said yesterday.

However, the ministry can say nothing about next year, as price pressures will depend on both positive and negative factors such as the minimum-wage increase to Bt300 per day nationwide early next year and strong economic growth.

The ministry reported that the Consumer Price Index in the first 10 months of the year rose 2.99 per cent year on year. The CPI for October alone climbed 3.32 per cent year on year and slightly by 0.13 per cent month on month.

Permanent secretary Vatchari Vimooktayon said that compared with other countries in the region, Thailand's inflation was quite steady this year, showing strong economic growth.

In the first nine months, inflation in the Philippines was 3.17 per cent, in mainland China 2.85 per cent, Hong Kong 4.17 per cent, Malaysia 1.81 per cent, Japan 0.02 per cent, Singapore 4.77 per cent, India 9.06 per cent, Laos 4.5 per cent and Vietnam 10.1 per cent.

Inflation this final quarter was forecast at 3.2-3.5 per cent because of the reduced pressure from rising oil prices, as the government is controlling the price of diesel, which is one of the major components in goods-transport costs.

The tamer increase in inflation last month reflected the rise in the food and beverage price index by 3.35 per cent and in non-food by 3.28 per cent. Fruit and |vegetable prices were the main driver.

Transport and communications, including mobile-phone service, jumped by 4.22 per cent.

To ensure fair prices and treatment for consumers, mobile-phone service, Internet access and Wi-Fi will be counted in inflation calculations soon.

In October, core inflation rose 1.83 year per cent on year and 0.02 per cent from September. Core inflation in the first 10 months was 2.15 per cent year on year, well within the Bank of Thailand's projection of 0.5-3 |per cent.

-- The Nation 2012-11-02

[cloudhopper]

Just great news - at that rate every 24 years the purchasing power of our baht is cut in half.

[meatboy]

what are they useing a bead board.

[KLL]

i just checked my electric bill, from 3.24 up to 4.0 THB/kWh in one year, ? about 23% increase

[Pormax]

How do these government officials come to their conclusions??

I have been living here for 3 years now and I find prices generally have gone up nearer 10% per year.not 3.1%.

But I suppose 3.1% inflation sounds better than 10% when you are relying on your cushy high paid job.

However my suggestion is for these officials to get out into the real world.

Edited November 2, 2012 by Pormax

[Naam]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

[cloudhopper]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

Please enlighten us then. What is THE meaning of inflation?

Edited November 2, 2012 by cloudhopper

[khaowong1]

How do these government officials come to their conclusions??

I have been living here for 3 years now and I find prices generally have gone up nearer 10% per year.not 3.1%.

But I suppose 3.1% inflation sounds better than 10% when you are relying on your cushy high paid job.

However my suggestion is for these officials to get out into the real world.

Govt. officials in every country down plays the real inflation number. That's part of their job. Us out here in the real world see what the real inflation numbers are like. Don't want the masses up in revolt do we?

[tinfoilhat]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

you are a smug bore. No offense meant.

Edited November 2, 2012 by tinfoilhat

[meatboy]

local beef jan.2012 160bht=kilo,last week 210bht=kilo,up 30%bread,eggs,beer,dont know about petrol just started driving,the only thing thats coming down are panties in pattaya.

[Naam]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

Please enlighten us then. What is THE meaning of inflation?

we have discussed inflation ad nauseam not only in 2 or 3 dedicated "inflation threads" but also in between many times and concluded without any doubt that inflation is not a static but a dynamic occurence which affects people individually.

a Hindu does not feel inflation if beef triples in price and neither does a Muslim if pork skyrockets. an employee earning 10k Baht a month couldn't care less if Daimler Benz or BMW, Thailand increases the prices of their cars by 50%. Somchai living with his family in a shack located in Nakhon Nowhere is not concerned if rents in Phuket are doubling. non smokers are not worried that a carton of Marlboro costs now 900+ Baht compared to 300 Baht some years ago. Pornthip, who's father-in-law brews Lao Khao, doesn't mind that a bottle of good Port is sold for 1,600 Baht and Bill, Buck, Hank and Joe who boast on Thaivisa that their electricity bill is 329 Baht because they like to drink warm Chang, have no aircons and shower with cold water are not worried if EGAT raises its kWh price from 3.60 to 4.00 Baht.

[xen]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

Please enlighten us then. What is THE meaning of inflation?

we have discussed inflation ad nauseam not only in 2 or 3 dedicated "inflation threads" but also in between many times and concluded without any doubt that inflation is not a static but a dynamic occurence which affects people individually.

a Hindu does not feel inflation if beef triples in price and neither does a Muslim if pork skyrockets. an employee earning 10k Baht a month couldn't care less if Daimler Benz or BMW, Thailand increases the prices of their cars by 50%. Somchai living with his family in a shack located in Nakhon Nowhere is not concerned if rents in Phuket are doubling. non smokers are not worried that a carton of Marlboro costs now 900+ Baht compared to 300 Baht some years ago. Pornthip, who's father-in-law brews Lao Khao, doesn't mind that a bottle of good Port is sold for 1,600 Baht and Bill, Buck, Hank and Joe who boast on Thaivisa that their electricity bill is 329 Baht because they like to drink warm Chang, have no aircons and shower with cold water are not worried if EGAT raises its kWh price from 3.60 to 4.00 Baht.

Naam, How does that explain inflation ? It may be a accurate observation but inflation, from what i understand is merely the difference in price between certain consumables over a certain period of time. What these consumables that are measured are often chosen to distort the real figure to benefit the party line.

It certainly benefits the government to have low inflation to baffle the punters and have them think that the government is looking out for them but inflation is required to keep economic growth chugging along. A delicate balance.

I personally would guess that inflation of common consumables such as basic foods , fuels ,rent and other basic living expenses are higher than 3 to 3.1 as a results of last years floods alone and the increase of wages promised to university graduates even if they occurred outside of this quarter.

I am sure there are others who are able to explain inflation better than what i can .

[Naam]

I am sure there are others who are able to explain inflation better than what i can.

there's no "one size fits all" explanation for inflation and neither can a headache be explained or defined. one can of course look at the governments "inflation basket" and determine which items are relevant and which not for a certain individual. discussing inflation without examining that basket or listing single items is a futile and time wasting undertaking.

what we can agree upon is that virtually all (from any government) calculated and published inflation rates aren't worth the paper they are printed on

[Pormax]

I am sure there are others who are able to explain inflation better than what i can.

there's no "one size fits all" explanation for inflation and neither can a headache be explained or defined. one can of course look at the governments "inflation basket" and determine which items are relevant and which not for a certain individual. discussing inflation without examining that basket or listing single items is a futile and time wasting undertaking.

what we can agree upon is that virtually all (from any government) calculated and published inflation rates aren't worth the paper they are printed on

Your last paragraph says it all and is what most TV posts are in fact saying.

Take a random figure multiply by 'x' divide by 'y' take the square root of that figure and lets go with that this year. Maybe not - lets take off 20% as well so the masses think we are doing a good job.

Sound about right to you?!!!!

[Naam]

Your last paragraph says it all and is what most TV posts are in fact saying.

Take a random figure multiply by 'x' divide by 'y' take the square root of that figure and lets go with that this year. Maybe not - lets take off 20% as well so the masses think we are doing a good job.

Sound about right to you?!!!!

[CaptHaddock]

Please enlighten us then. What is THE meaning of inflation?

Inflation is a decline in the purchasing power of money relative to goods and services over time. Not all inflation affects all consumers. Not all price increases are due to inflation. For example, if the living standards in the developing world increase then the price of some commodities may increase due to supply and demand, without being accompanied by a general increase in prices that would be attibutable to a decline in the purchasing power of money, i.e. inflation.

[Jayman]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

Please enlighten us then. What is THE meaning of inflation?

It means you fiat money is being devalued and buys less.

Inflation is a direct correlation to the devaluation of the currency. Just because prices have gone up, doesn't mean the currency's value has gone down.

Edited November 4, 2012 by Jayman

[Naam]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

Please enlighten us then. What is THE meaning of inflation?

It means you fiat money is being devalued and buys less.

Inflation is a direct correlation to the devaluation of the currency. Just because prices have gone up, doesn't mean the currency's value has gone down.

that's how the milkmaid calculates because she is not aware that she could let her fiat money work hard 24/7 to compensate not only for actual inflation but to generate even a "hansum" profit on top of that.

[mikecwm]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

If we ever meet somewhere remind me to tell you what a obnoxious person you are.

[Naam]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

If we ever meet somewhere remind me to tell you what a obnoxious person you are.

it is highly unlikely that i meet people like you.

[CaptHaddock]

It means you fiat money is being devalued and buys less.

Inflation is a direct correlation to the devaluation of the currency. Just because prices have gone up, doesn't mean the currency's value has gone down.

Inflation can occur with metallic currency, not just fiat money. Since inflation is a change in the relative value of money versus goods and services, if the availability of those goods and services declined the result would be inflation even on a gold standard. This has occurred historically several times: after the depopulation in England caused by the Great Plague in 1347 the cost of labor rocketed up without a change in the money supply. After World War I there was chronic inflation in Germany that culminated in the hyperinflation of 1923 to 1924. The chronic inflation was a result of the war reparations that Germany was required to pay under the Versailles treaty which were paid in kind: coal, timber and steel mostly. The resulting relative scarcity of those materials caused the chronic inflation. Once again the money supply did not change until the hyperinflation episode of 1923 which resulted from the decision of the German government to pay workers in the Ruhr valley who went on strike when the French seized the Ruhr for default of reparations payments.

It is also true that an increase in the money supply does not necessarily cause inflation. Japan increased its money supply by 30% in 2001/2002 but deflation returned anyway as the money just sat in the bank vaults. Although the hard money types have been predicting high inflation in the US since the crisis began in 2008, this has not occurred because while the balance of the Fed indeed expanded the money supply only grew at a normal rate and the velocity of money was suppressed by the after-effects of the collapsing of the housing bubble.

[mikecwm]

gentlemen,

your ranting just proves that none of you have the slightest idea concerning the meaning of inflation. no offence meant!

If we ever meet somewhere remind me to tell you what a obnoxious person you are.

it is highly unlikely that i meet people like you.

Yes, I imagine it must be very difficult to meet anyone when you've got your head where the sun don't shine.

Edited November 7, 2012 by mikecwm