Inflation in LOS

[jaideeguy]

Will it slow down??

I've been coming to LOS for over 2 decades, starting as 'visa runs' when I lived in the Philippines so I've had an opportunity to observe inflation in both SE Asia countries. 20 years ago, it seemed that the economies of both countries were about on par with each other and altho there was a steady rate of inflation in the Phil, Thailand's inflation remained quite stable, and I moved here in Y2k and enjoyed a much more stable economy, but this last 7 or 8 years, the inflation has skyrocketed with no end in sight.

A lot due to the raising of the minimum wage as immediately after the 20% increase in wages, the costs have gone up 20%+ and are still increasing at an alarming rate. Luckily fuel prices have remained somewhat stable for the last 3 or 4 years, but I dread the inevitable increase in inflation when oil prices do increase.

I have no confidence in government figures on inflation but I can guess that the inflation is at least 5 to 10% and wonder if it will slow down at some point??

Your thoughts???

[AYJAYDEE]

it wont slow down if they keep the rice price guarantee

[beachproperty]

Yeah there is inflation here.....but so what?.... ITS EVERYWHERE!...

Still cheaper to live here than in the States or Europe. AND great weather, great food and great people!

[GuestHouse]

Yeah there is inflation here.....but so what?.... ITS EVERYWHERE!...

Still cheaper to live here than in the States or Europe. AND great weather, great food and great people!

My guess is you do not understand the differential inflation rates between your cost of living as an expat in Thailand and inflation rates back in the old country.

[stoneyboy]

Reminds me my front drivers side tyre needs some air.

[beachproperty]

Yeah there is inflation here.....but so what?.... ITS EVERYWHERE!...

Still cheaper to live here than in the States or Europe. AND great weather, great food and great people!

My guess is you do not understand the differential inflation rates between your cost of living as an expat in Thailand and inflation rates back in the old country.

A differential measuring the gap in interest rates between two similar interest-bearing assets. Traders in the foreign exchange market use interest rate differentials (IRD) when pricing forward exchange rates. Based on the interest rate parity, a trader can create an expectation of the future exchange rate between two currencies and set the premium (or discount) on the current market exchange rate futures contracts.

Change "interest rates" to "inflation rates"

And your Point is ?

Mine was that its still cheaper to live in Thailand than it is in the West.

Edited October 26, 2013 by beachproperty

[A1Str8]

Once Yingluck takes notice of it, it will immediately drop globally.

[h90]

When you have the most corrupt politician in power the money they steal must come from somewhere.

[GuestHouse]

Yeah there is inflation here.....but so what?.... ITS EVERYWHERE!...

Still cheaper to live here than in the States or Europe. AND great weather, great food and great people!

My guess is you do not understand the differential inflation rates between your cost of living as an expat in Thailand and inflation rates back in the old country.

A differential measuring the gap in interest rates between two similar interest-bearing assets. Traders in the foreign exchange market use interest rate differentials (IRD) when pricing forward exchange rates. Based on the interest rate parity, a trader can create an expectation of the future exchange rate between two currencies and set the premium (or discount) on the current market exchange rate futures contracts.

Change "interest rates" to "inflation rates"

And your Point is ?

Mine was that its still cheaper to live in Thailand than it is in the West.

I have several.

1. You've quoted a paragraph which you have downloaded off the internet (without giving a reference) and which anywise is not supportive of any argument about differential inflation rates - even if you yourself add a instruction to replace 'Interest' with 'Inflation'

2. You have completely missed the point on differential inflation rates - or more precisely you have missed the point on differential inflation rates as they apply to the cost of living of expats living in Thailand.

3. Your observation that it is still cheaper to live in Thailand than the west is flawed in one sense and only temporarily true in another - The definition of 'Cheaper' is dependent upon what goods and services an individual uses - If we accept that those that you use are at the moment cheaper we come then to the fact that those costs are changing. They are changing by the 'differential inflation rates as it applies to expats in Thailand'

Which to explain is; inflation in the cost of the goods and services expats use in Thailand v the inflation in the cost of those same goods and services at wherever you are making your comparison.

Rest assured, whatever the official Thai government inflation rate is, it will in the fist instance be wrong and in the second it will completely different between the goods and services used by Thais and the goods and services used by expats - Guess which is higher?!

Edited October 26, 2013 by GuestHouse

[beachproperty]

Guesthouse.....gotta admit ....love reading your intellectual gobbly gook! Yes I did a cut and paste (how childish of me)

But since I am a ignorant self-made man (Still love learning though as I admit, I know very little.......its the people who think they know everything that really aren't so smart because they have closed their minds)

So Back to my point:

In layman's terms ...inflation notwithstanding....It's cheaper for me to live the "same" lifestyle here in Thailand then in the West. I know that may be TOO simple for you to understand ....but I'm trying.

I try not to argue with intellectual's as there is no winning and I really don't care about winning or losing....Just saying my opinion....

Guesthouse you seem to like formula's and Theories etc.

Best one I EVER learned was the KISS theory ...."Keep It Simple St---d"

Edited October 26, 2013 by beachproperty

[GuestHouse]

Guesthouse.....gotta admit ....love reading your intellectual gobbly gook! Yes I did a cut and paste (how childish of me)

But since I am a ignorant self-made man (Still love learning though as I admit, I know very little.......its the people who think they know everything that really aren't so smart because they have closed their minds)

So Back to my point:

In layman's terms ...inflation notwithstanding....It's cheaper for me to live the "same" lifestyle here in Thailand then in the West. I know that may be TOO simple for you to understand ....but I'm trying.

I try not to argue with intellectual's as there is no winning and I really don't care about winning or losing....Just saying my opinion....

Forgive me for the following act of gross intellectual skulduggery.. as I refer you to the title of this thread.

You'll find it near the top of the page.

[beachproperty]

Guesthouse ....I do appreciate the simplicity of that response....

AM BAD....as I was wrong again....(guess the hole keeps getting bigger)

Living in Thailand "even with the inflation" that is going on here (and everywhere in the world) it's still cheaper to live in Thailand!

Assuming a 5% inflation

Example....Rent for a 3bedroom house here in Thailand....15,000 Baht.....next year adjusting for inflation 15,750 baht

.................Rent for a 3 bedroom house in America........$2000....rent next year adjusting for inflation $2,100

So Thailand inflation in the rent cost's me $25........Inflation in America inflation cost me $100

The point being.... even if inflation is greater here in Thailand the base amount is MUCH smaller to which that inflation is aggregated on.

And the West will more than likely Always (That could change ...never know) be more expensive that than Thailand to live.

You know Guesthouse if your trying to belittle me, up to you....your loss, granted I am a newbie and am attempting to be sincere ...Maybe I have failed ...but being who I am I learn more by my failures than I do by my successes ....

So have at it ...if it makes you feel better, more secure....superior.... I concede

Edited October 26, 2013 by beachproperty

[GuestHouse]

bp, I'm not trying to belittle you, far from it.

Can I make a suggestion - keep a very good and as accurate as you can record of your weekly spend over a couple of weeks - put it to one side and revisit it a year from now, if you have the patience keep it for future reference.

My reason for saying this is that my wife and I found a two year old receipt for our main weekly shop, like most people we are creatures of habit, particularly in the food and household consumables we buy.

Comparing this two year old bill with the bill from our most recent shop we found the inflation between the two to be over 15% in two years. Nothing had gone down and some foods had gone up 20% or more.

I strongly recommend anyone thinking of retiring or settling in Thailand on a fixed income to take a very serious look at the actual inflation rate as it applies to the goods and services they themselves use.

[NeverSure]

How can people keep saying it is cheaper to live in LOS than in the US? I think inflation has been awful in Thailand in the past 5 years and it is no longer cheap.

The only way to live cheaply in Thailand is to cut your lifestyle way down and think like a Thai.

US. Western food, electronics, cars, gasoline - everything Western is much cheaper and you can own land.

On a budget? Buy this house in the really nice little town of Hereford Texas which is a cattle ranch and wheat community. HERE and your payments including property taxes and insurance would be only $390 (12,000 baht) per month, and the sellers should accept $70k for the house in this market. You'd need $15k down which is just about 465K baht, or much less than LOS requires for a retirement extension.

Click through the pictures. 3 bedrooms, 2 baths, 2 car garage, underground utilities, nice street, curbs, sidewalks, and the water is safe to drink. The sanitary sewer works, plumbed into the sewer line in the street. It includes the land.

If you're broke rent out 1 of the bedrooms and bathrooms to a renter and live there nearly for free.

Now let's buy a used car. HERE I just grabbed the first dodgy looking real man's truck I saw. It's a 3/4 ton extra cab. The dealer wants 120,000 baht for it but I'll bet he'd take 90,000 baht. Wrong rig? There are thousands more out there and probably better.

<deleted> is "cheap" about Thailand unless you want a 30 sm studio and dodgy food and water?

Edited October 26, 2013 by NeverSure

[meom]

I'm not much of an economist but in comparison to 18 years ago I spent double nowadays to enjoy the same standard of living.

[beachproperty]

Neversure....."really nice little town of Hereford Texas"

There are plenty of places in American to live that the cost of buying a house is cheaper there than in Thailand....."Detroit" for example ....and of course your personal paradise of "Hereford Texas" (where the population is 15,000 with 14,500 are looking at every chance to get out)...and YES cars are cheaper....

BUT car insurance is more expensive, Healthcare (Obamacare) is skyrocketing and mandatory, Property taxes, sales tax, income tax, and the list goes on and on and on

But unfortunately there are not that many places in America where someone on a limited budget can live a "nice quality life". Personally I choose Thailand .....as MANY others have to....

Its a personal choice and just one mans humble opinion

Guess you better stay in the US "because its cheaper for you to live there"

[fearless1]

In my opinion the only reason it's cheaper to live in Thailand than the USA, is that I'm willing to make concessions in my lifestyle here that I am not willing to make back home. I'm perfectly happy with my small apartment here and using a motorbike and songthaews to get around, but in the USA I would feel a little out of place doing that.

[NeverSure]

Neversure....."really nice little town of Hereford Texas"

There are plenty of places in American to live that the cost of buying a house is cheaper there than in Thailand....."Detroit" for example ....and of course your personal paradise of "Hereford Texas" (where the population is 15,000 with 14,500 are looking at every chance to get out)...and YES cars are cheaper....

BUT car insurance is more expensive, Healthcare (Obamacare) is skyrocketing and mandatory, Property taxes, sales tax, income tax, and the list goes on and on and on

But unfortunately there are not that many places in America where someone on a limited budget can live a "nice quality life". Personally I choose Thailand .....as MANY others have to....

Its a personal choice and just one mans humble opinion

Guess you better stay in the US "because its cheaper for you to live there"

There are thousands of small towns in the heartland of America away from the likes of Detroit with houses like that. If you have a problem with that, let's pick another town. It was and example, but I like that area.

Many retired to Thailand are seniors on fixed incomes. Health insurance? Anyone 65 or older can get Medicare A and B for about $105 a month or Medicare Advantage for about $100 - $150 per month which bypasses Obamacare.

That person can't get health insurance at any price in Thailand. Being at total risk for medical doesn't sound fun to me.

It is for a fact cheaper to live in the US in one of thousands of small towns IF you want that nice of a house and Western food, and if you want the equivalent of Medicare health insurance. The price of that house and land is only 2 million baht and you own it. Financing rates are low if you need it.

You need to sharpen your pencil. We aren't talking about where you'd rather live, but only the cost comparison and you can't do that in Thailand.

[jaideeguy]

My OP seems to have gotten sidetracked somewhat so I will repeat my main question that I threw out in my OP...........

"I have no confidence in government figures on inflation but I can guess that the inflation is at least 5 to 10% and wonder if it will slow down at some point??

Your thoughts???"

Still wondering if it will 'slow down at some point'.

We all know that it's a global situation, but as I mentioned, 20+ years ago there was no obvious inflation like there is now.

Edited October 26, 2013 by jaideeguy

[Bender]

How can people keep saying it is cheaper to live in LOS than in the US? I think inflation has been awful in Thailand in the past 5 years and it is no longer cheap.

The only way to live cheaply in Thailand is to cut your lifestyle way down and think like a Thai.

US. Western food, electronics, cars, gasoline - everything Western is much cheaper and you can own land.

On a budget? Buy this house in the really nice little town of Hereford Texas which is a cattle ranch and wheat community. HERE and your payments including property taxes and insurance would be only $390 (12,000 baht) per month, and the sellers should accept $70k for the house in this market. You'd need $15k down which is just about 465K baht, or much less than LOS requires for a retirement extension.

Click through the pictures. 3 bedrooms, 2 baths, 2 car garage, underground utilities, nice street, curbs, sidewalks, and the water is safe to drink. The sanitary sewer works, plumbed into the sewer line in the street. It includes the land.

If you're broke rent out 1 of the bedrooms and bathrooms to a renter and live there nearly for free.

Now let's buy a used car. HERE I just grabbed the first dodgy looking real man's truck I saw. It's a 3/4 ton extra cab. The dealer wants 120,000 baht for it but I'll bet he'd take 90,000 baht. Wrong rig? There are thousands more out there and probably better.

<deleted> is "cheap" about Thailand unless you want a 30 sm studio and dodgy food and water?

Completely agree with you,

your last sentence sum up completely this myths.

People who claims that Thailand is cheaper than Europe are certainly living here on a tight budget. I mean a 30 baht meal, a 10 baht bus ride, a 3000 baht shoe box apartment.... Yes if you accept to live close to nothing, Thailand is dirt cheap.

But if you want to live a decent, standard, normal life, Bkk is more expensive than Europe. That's just a pure fact! Dont they buy anything, i really do wonder??

I really do pity all these people who come to this place, to live the same life than a low wage thai worker...

[beachproperty]

The attached chart shows inflation in Thailand over the last two years.....Doesn't seem really high ( average about 3%/year)....as mentioned earlier cost of the same groceries two years ago is much more expensive than the inflation that is shown by the chart! In general we have all noticed the higher prices from street food going from 25 baht to 30-35baht, to workers wages being increased (which has to be passed along...resulting in higher prices)

Now I'm no economist....but isn't there a "real life" inflation standard (the shopping cart gage for example....take the same groceries 2 years ago and price them against the price now)....rather than what ever standard economic formula the government uses (the source for the chart is the Bureau of Trade and Economic indices, Ministry of Commerce, Thailand)...

Inflation slow down? for me....I wouldn't think so with all the growth and Asean Economic thing occurring in a few years.

Reality....Thailand IS costing more...but for me I can live with it for now....just hope it doesn't get too out of hand

[beachproperty]

How can people keep saying it is cheaper to live in LOS than in the US? I think inflation has been awful in Thailand in the past 5 years and it is no longer cheap.

The only way to live cheaply in Thailand is to cut your lifestyle way down and think like a Thai.

US. Western food, electronics, cars, gasoline - everything Western is much cheaper and you can own land.

On a budget? Buy this house in the really nice little town of Hereford Texas which is a cattle ranch and wheat community. HERE and your payments including property taxes and insurance would be only $390 (12,000 baht) per month, and the sellers should accept $70k for the house in this market. You'd need $15k down which is just about 465K baht, or much less than LOS requires for a retirement extension.

Click through the pictures. 3 bedrooms, 2 baths, 2 car garage, underground utilities, nice street, curbs, sidewalks, and the water is safe to drink. The sanitary sewer works, plumbed into the sewer line in the street. It includes the land.

If you're broke rent out 1 of the bedrooms and bathrooms to a renter and live there nearly for free.

Now let's buy a used car. HERE I just grabbed the first dodgy looking real man's truck I saw. It's a 3/4 ton extra cab. The dealer wants 120,000 baht for it but I'll bet he'd take 90,000 baht. Wrong rig? There are thousands more out there and probably better.

<deleted> is "cheap" about Thailand unless you want a 30 sm studio and dodgy food and water?

Completely agree with you,

your last sentence sum up completely this myths.

People who claims that Thailand is cheaper than Europe are certainly living here on a tight budget. I mean a 30 baht meal, a 10 baht bus ride, a 3000 baht shoe box apartment.... Yes if you accept to live close to nothing, Thailand is dirt cheap.

But if you want to live a decent, standard, normal life, Bkk is more expensive than Europe. That's just a pure fact! Dont they buy anything, i really do wonder??

I really do pity all these people who come to this place, to live the same life than a low wage thai worker...

3000 baht (72 euros).....apartment

30 baht meals X 3X30=2700 baht(65 euros).......food for 1 month

10baht rides ...twice a day...= 600 baht (14 euros).......transportation for one month

Throw in another 100 euros for "what not"

WOW! Seems like according to YOU ....living in Thailand on the bare bones can be done for 251 Euros/month .....

and you Think it's "Cheaper" to live in Europe....

What tent are you living out of?

Decent standard of living...

Apartment .......6000 baht a month

Food................6000 baht a month

Transportation..3000 baht a month

Miscelaneous...6000 baht a month

21,000 baht a month for an "decent" quality of life.......500 Euros .......So your saying in Europe you can have a "decent" quality of life for 500 euros/month...

Wow....I'm packing up and moving to Europe!!!!!

Edited October 26, 2013 by beachproperty

[Thai at Heart]

Yeah there is inflation here.....but so what?.... ITS EVERYWHERE!...

Still cheaper to live here than in the States or Europe. AND great weather, great food and great people!

My guess is you do not understand the differential inflation rates between your cost of living as an expat in Thailand and inflation rates back in the old country.

A differential measuring the gap in interest rates between two similar interest-bearing assets. Traders in the foreign exchange market use interest rate differentials (IRD) when pricing forward exchange rates. Based on the interest rate parity, a trader can create an expectation of the future exchange rate between two currencies and set the premium (or discount) on the current market exchange rate futures contracts.

Change "interest rates" to "inflation rates"

And your Point is ?

Mine was that its still cheaper to live in Thailand than it is in the West.

It is a matter of horses for courses.

When my kids were young, it was a lot cheaper to live in Thailand. Now they are of an age, throwing in school fees and needing to find stimulating things for them to do, UK is cheaper.

Went to pizza hit last night. Large pizza with unlimited salad. 13.95

700 baht. What is it going for in pizza hut in Thailand? Not significantly less. If you are happy to eat pad Thai and somtaam every day it's cheaper.

If you want something better, Thailand is catching up with the west very rapidly.

[Bender]

How can people keep saying it is cheaper to live in LOS than in the US? I think inflation has been awful in Thailand in the past 5 years and it is no longer cheap.

The only way to live cheaply in Thailand is to cut your lifestyle way down and think like a Thai.

US. Western food, electronics, cars, gasoline - everything Western is much cheaper and you can own land.

On a budget? Buy this house in the really nice little town of Hereford Texas which is a cattle ranch and wheat community. HERE and your payments including property taxes and insurance would be only $390 (12,000 baht) per month, and the sellers should accept $70k for the house in this market. You'd need $15k down which is just about 465K baht, or much less than LOS requires for a retirement extension.

Click through the pictures. 3 bedrooms, 2 baths, 2 car garage, underground utilities, nice street, curbs, sidewalks, and the water is safe to drink. The sanitary sewer works, plumbed into the sewer line in the street. It includes the land.

If you're broke rent out 1 of the bedrooms and bathrooms to a renter and live there nearly for free.

Now let's buy a used car. HERE I just grabbed the first dodgy looking real man's truck I saw. It's a 3/4 ton extra cab. The dealer wants 120,000 baht for it but I'll bet he'd take 90,000 baht. Wrong rig? There are thousands more out there and probably better.

<deleted> is "cheap" about Thailand unless you want a 30 sm studio and dodgy food and water?

Completely agree with you,

your last sentence sum up completely this myths.

People who claims that Thailand is cheaper than Europe are certainly living here on a tight budget. I mean a 30 baht meal, a 10 baht bus ride, a 3000 baht shoe box apartment.... Yes if you accept to live close to nothing, Thailand is dirt cheap.

But if you want to live a decent, standard, normal life, Bkk is more expensive than Europe. That's just a pure fact! Dont they buy anything, i really do wonder??

I really do pity all these people who come to this place, to live the same life than a low wage thai worker...

3000 baht (72 euros).....apartment

30 baht meals X 3X30=2700 baht(65 euros).......food for 1 month

10baht rides ...twice a day...= 600 baht (14 euros).......transportation for one month

Throw in another 100 euros for "what not"

WOW! Seems like according to YOU ....living in Thailand on the bare bones can be done for 251 Euros/month .....

and you Think it's "Cheaper" to live in Europe....

What tent are you living out of?

Decent standard of living...

Apartment .......6000 baht a month

Food................6000 baht a month

Transportation..3000 baht a month

Miscelaneous...6000 baht a month

21,000 baht a month for an "decent" quality of life.......500 Euros .......So your saying in Europe you can have a "decent" quality of life for 500 euros/month...

Wow....I'm packing up and moving to Europe!!!!!

I just bought some nice leather shoe, i guess it might pay your monthly rental apartment...

and 6000 baht for food are you on diet?

I repeat what i said :

People who claims that Thailand is cheaper than Europe are certainly living here on a tight budget.

And obviously your budget is quite tight, sorry to be harsh!

ps: take a deep breath and read again my last msg, you read it completely wrong!

Edited October 26, 2013 by Bender

[slapout]

A member who could give documented numbers for true inflation of food supplies is Gonzo.

The food items that many farang want, seem to be going up at a run away rate and actully cost more than they do in the US. Many of these items such as dairy products are orginating in Thailand. I reckon part of this comes from the Thai way of doing their business plan (price adjustment) after a government announcement of fuel increase of 3% and/or a wage increase of 30% etc. The first would result in a 5 baht increase on a 30 baht bowl of noodle and the wage notice results in a 10 baht raise on the 35 baht noodle, thus you now pay 45 baht for you noodle, plus charge for water.

Edited October 26, 2013 by slapout

[Hedghog]

If you can't afford it.

Its not cheap.

If you need to ask the price.

You can't afford it.

[Hedghog]

Double post removed

Edited October 26, 2013 by Hedghog

[David48]

If you can't afford it.

Its not cheap.

If you need to ask the price.

You can't afford it.

Tired Clichés really

My thinking logic is different to yours.

"If you can't afford it. Its not cheap."

Cheap is a relative thing ... a price comparison.

For example, two friends talking ... 'Hey, I just return flight to ----- for $1,000'

"Who is that with"

"AAA Airlines"

"That is a 'cheap' fare, I've never seen it that low ... but I still can't afford it ... I have to fly with BBB Airlines".

So, while you can't afford it, doesn't mean it's not cheap on a comparison basis.

That's how we decide if something is cheap ... or not ... on a price comparison basis.

BTW ... I always ask the price ...

[beachproperty]

Guesthouse, Neversure and Bender.......A topic was started by me asking people whether Thailand is cheaper or more expensive than their home country.....You have all made your views very clear here although this topic is about inflation. Why not post on What's your monthly cost to live in Thailand?

as the majority seem to be saying that Thailand is a LOT cheaper to live than in their home country.

[zydeco]

How can people keep saying it is cheaper to live in LOS than in the US? I think inflation has been awful in Thailand in the past 5 years and it is no longer cheap.

The only way to live cheaply in Thailand is to cut your lifestyle way down and think like a Thai.

US. Western food, electronics, cars, gasoline - everything Western is much cheaper and you can own land.

On a budget? Buy this house in the really nice little town of Hereford Texas which is a cattle ranch and wheat community. HERE and your payments including property taxes and insurance would be only $390 (12,000 baht) per month, and the sellers should accept $70k for the house in this market. You'd need $15k down which is just about 465K baht, or much less than LOS requires for a retirement extension.

Click through the pictures. 3 bedrooms, 2 baths, 2 car garage, underground utilities, nice street, curbs, sidewalks, and the water is safe to drink. The sanitary sewer works, plumbed into the sewer line in the street. It includes the land.

If you're broke rent out 1 of the bedrooms and bathrooms to a renter and live there nearly for free.

Now let's buy a used car. HERE I just grabbed the first dodgy looking real man's truck I saw. It's a 3/4 ton extra cab. The dealer wants 120,000 baht for it but I'll bet he'd take 90,000 baht. Wrong rig? There are thousands more out there and probably better.

<deleted> is "cheap" about Thailand unless you want a 30 sm studio and dodgy food and water?

I'm from Texas. Tornadoes and hail storms in the spring. Hurricanes up from the gulf in the autumn. Hotter than Thailand in the summer. And ice storms in the winter. And State Farm Insurance doubling the cost of my mortgage with mandatory insurance. Thailand is still better.