Its Happening - Law to Tax Overseas Income Now in Progress

[khunjerrybkk]

I have lived in Thailand since 2006 and have steadily seen most food and dry goods items being sold at Tesco, Big-C, Tops Market & Rimpring Market reaching individual price increases of between 20-75 percent.

Usually, my purchases are the same items each week or month.... so it's not difficult to compare costs/pricing from 2006 to the present.

There appears to be absolutely no Consumer pricing controls in Thailand to protect the shopping & buying public.

Why doesn't that surprise anyone!

[infinity11]

Inflation is everywhere?

Most everywhere?

It is often called the 'hidden' tax.'

[wprime]

At an average increase of 50%, that's not even 6% pa - not bad at all for a developing economy. Governments don't have the power to control prices - the cost of controlling the price of a commodity requires an exponentially increasing input of capital, eventually capital input runs out and the commodity's value corrects in the opposite direction. Governments may implement such policies on a temporary basis but it cannot be done perpetually.

[trainman34014]

Been here for six years and closely monitor our costs (of living ). First three years our own 'inflation' on a basket of the same products produced 8%. Last three years have produced 15%.

Don't worry chums; Yingluck and her mates say it's all in our own minds and isn't really happening !

[soomak]

I've been in Thailand almost 3 years, and this is what I've experienced in terms of inflation:

Rent = stayed the same (my largest expense)

Food = not sure, as I don't remember the prices from 3 years ago

Internet = same price

Electricity = has gone up, but not sure by has much as the bill is confusing

Phone (fixed line) = same price

Water = same price per unit

Taxis = same price

BTS = price went up by 5-10% (depending on the trip)

Movie tickets = I think its the same price, but not sure

Massage = seems to be the same

TVs = price actually gone down for a 32 inch flat screen TV

Immigration "tax" = same (1,900 baht)

Conclusion:

There is some inflation, but it's not that high.

Edited September 20, 2013 by soomak

[yourauntbob]

What do you want them to do? If they limit the price then people will simply stop producing all items that have a price ceiling. This has happened in every country that has tried such short sighted schemes in the past. The problem goes back to all the excess money that is being printed world wide and Thailand's incessant need to keep the baht weak; therefore printing more money themselves and increasing inflation.

[lujanit]

I've been in Thailand almost 3 years, and this is what I've experienced in terms of inflation:

Rent = stayed the same (my largest expense)

Food = not sure, as I don't remember the prices from 3 years ago

Internet = same price

Electricity = has gone up, but not sure by has much as the bill is confusing

Phone (fixed line) = same price

Water = same price per unit

Taxis = same price

BTS = price went up by 5-10% (depending on the trip)

Movie tickets = I think its the same price, but not sure

Massage = seems to be the same

TVs = price actually gone down for a 32 inch flat screen TV

Immigration "tax" = same (1,900 baht)

Conclusion:

There is some inflation, but it's not that high.

This is a very good post. You need to determine inflation by your own consumption.

[tingtong]

1. he also has inflation, just confused or dont know how much his costs went up....also 3 yrs...might got a lucky break?

2. a TV purchase vs. food cost? it is in official basket, sure, but your own "infaltion", you can postpone a TV, you cant postpone eating.

in the 11 yrs here, i saw the prices of benzine go from 14 to 45 thb, the bus ticket 4-5thb to 10thb, the fried rice from 25thb to 40 thb, milk, yougurt to double, etc. indeed there is inflation, but there is also in the rest of the world too.

sadly what i havent seen is an improving exchange rate, or meaningful increase in my salary.

[Heng]

Protecting people just makes them weak. Price controls are a crutch.

[CPH]

The problem in Thailand is that prices can stay steady for quite some time and the suddenly evrything goes up in price, like I think it has done in recent months.

Government say there is no inflation, but inflation in Asia is always around 10 % per year. So how long will you be able to live here. Its 100 % in 7-8 years.

[chris2004]

I've been in Thailand almost 3 years, and this is what I've experienced in terms of inflation:

Rent = stayed the same (my largest expense)

Food = not sure, as I don't remember the prices from 3 years ago

Internet = same price

Electricity = has gone up, but not sure by has much as the bill is confusing

Phone (fixed line) = same price

Water = same price per unit

Taxis = same price

BTS = price went up by 5-10% (depending on the trip)

Movie tickets = I think its the same price, but not sure

Massage = seems to be the same

TVs = price actually gone down for a 32 inch flat screen TV

Immigration "tax" = same (1,900 baht)

Conclusion:

There is some inflation, but it's not that high.

This is a very good post. You need to determine inflation by your own consumption.

If your main consumption is beer and the ladies then inflation is very high.

[davejones]

But wages, salary, pensions rise as well. If prices rise 100% and your salary rises 100%, then you're no better or no worse off. The OP is only mentioning one side. What about wage inflation? And the OP's only mentioning food. Most people spend money on other things. Rent in Bangkok has gone down in the last 3 years in the condos I'm familiar with.

If food is too expensive at the stores you mention, shop at a local market instead.

Inflation exists all over the world. What point are you trying to make. You seem a little confused.

[Pib]

Inflation in Thailand has only been around 3% per year---assuming you only buy the government's basket of goods they use to determine inflation and assuming you go to the same places to buy your goods the govt uses to check pricing of their basket of goods. But in all seriousness, many food prices ( unprepared and prepared) have underwent some big increases over the last couple of years....that's what you will hear most Thai's talk about when talking price increases. For farangs who generally have good income most have noticed the price increases but their pocketbook can afford the increases which can in turn make them less likely to really notice the inflation; but for most Thai's making around 10-15K baht per month (or significantly less), the inflation has been really hard on them.

[painterscabin]

About a year and a half ago, the wife and I went to lotus, and we both really noticed the price increase. We talked about it on the spot and there after, for we were in the same lotus two weeks before this dramtic jump. We live fairly low budget, but as one other poster put it, think about how hard it hits your average thai making 10 to 15 thousand bht per month. I'm glad my wifes a great cook and we grow alot of our own stuff.

[KittenKong]

Food = not sure, as I don't remember the prices from 3 years ago

Electricity = has gone up, but not sure by has much as the bill is confusing

Water = same price per unit

I do remember what I paid for food 3 years ago and most prices of the things I eat (I hardly ever eat at home, except when I have bought a Thai take-away) have indeed increased by around 20% in that time. Some have gone up by nearly 35%.

Electricity has gone up by over 10% and my water bill has gone up by about 50%, though most of that is to do with an extra waste water fee that my condo building introduced.

So I would say that there definitely is significant inflation on many items. The main problem in Thailand seems to be that rather than increase prices once or twice a year by a small amount, small businesses seem to wait a long time then bring in some enormous increase all in one go. My local noodle vendor put prices up from 35B to 50B, overnight. I still eat there because the noodles are particularly good, and thankfully that 15B is not going to have any noticeable impact on my lifestyle.

[chris2004]

Inflation in Thailand has only been around 3% per year---assuming you only buy the government's basket of goods they use to determine inflation and assuming you go to the same places to buy your goods the govt uses to check pricing of their basket of goods. But in all seriousness, many food prices ( unprepared and prepared) have underwent some big increases over the last couple of years....that's what you will hear most Thai's talk about when talking price increases. For farangs who generally have good income most have noticed the price increases but their pocketbook can afford the increases which can in turn make them less likely to really notice the inflation; but for most Thai's making around 10-15K baht per month (or significantly less), the inflation has been really hard on them.

These Government inflation quotes are just a joke (like the UK) prices are rising much faster than 3%. Beer has just gone up 20% in Pattaya. A lot of my regular purchases go up 10% + every few months.

[Naam]

A lot of my regular purchases go up 10% + every few months.

[scobie redux]

Beer has just gone up 20% in Pattaya. A lot of my regular purchases go up 10% + every few months.

Neither of those statements are true, are they chris?

Ive been in and out of Thailand for around a decade and, sure, some things are more than before, but that's the same the world over. What's the big deal. Of the things most people buy each day, a taxi ride is still excellent value, the BTS fares have just been increased for the first time since I've been here, it's still relatively easy to find a bar selling a San Mig Lite for 60-80 baht each, and things like internet services, 3G have gone down.

Soup and noodles is still around 30baht, and a bottle of fresh OJ is still 20 baht. A couple of portions of fruit in the morning are still 10 baht each.

I think people who live in Thailand a long time live in some kind of time bubble, and assume that their home countries have stood still in the time they have been away.

[sms747]

just been to the wholesalers for a case of chang, up from 467-536 yet the tax increase was mean to be a lot less percentage wise.

[Pib]

just been to the wholesalers for a case of chang, up from 467-536 yet the tax increase was mean to be a lot less percentage wise.

Before the tax increase 467 was the normal price in stores like Lotus and Makro....that almost a 15% increase. I haven't seen a case of Chang or Chang Draught (which I drink) in the stores I visit in western Bangkok for almost 3 weeks...even checked my nearby Lotus today...they only have Leo and some imported beers.

[sms747]

They have 100's of cases of chang in the warehouses off param 2 and were unloading more while we were there, same price as big c though so I don't know why the mrs thinks it's a better deal, you can of course buy at any time.

[Pib]

They have 100's of cases of chang in the warehouses off param 2 and were unloading more while we were there, same price as big c though so I don't know why the mrs thinks it's a better deal, you can of course buy at any time.

I hope it starts showing up in my part of Bangkok soon. I was also at the Big C in Bang Yai (Nonthaburi) yesterday...same story...only a few cases of Leo in stock. A store assistant said they are just not getting much beer in..."bpen bpanhaa paasii (i.e., a tax problem)" she said....I understood what she meant.