Weaker baht lowers Bangkok's cost of living

[webfact]

COST OF LIVING
Weaker baht lowers Bangkok's cost of living
The Nation

BANGKOK: -- Expatriates should be finding it cheaper to live in Bangkok than last year, based on the latest cost-of-living ranking by ECA International.

Of more than 440 locations worldwide, Bangkok is ranked the 172nd-most-expensive place for expatriates in the twice-yearly cost-of-living survey. Among Asia-Pacific cities, it is ranked 38th.

"Bangkok fell 23 spots to 172nd position, while Kuala Lumpur has fallen eight places to 194th place," the consulting firm reported. "Although items in ECA's shopping basket have risen in price in both locations over the year, the weakening of the baht and the ringgit has meant that these cities have become cheaper for many expatriates."

The baht makes products cheaper, despite higher prices for daily needs such as groceries, fresh produce, drinks and tobacco, clothing, services and eating out.

The baht has weakened by 4.88 per cent from 30.94 per US dollar on June 11, 2013, to 32.45 as of yesterday.

ECA International provides knowledge, information and technology for the management and assignment of employees around the world.

According to the survey, Caracas in Venezuela is the most expensive city currently, surpassing Norway's Oslo, which has dominated the No 1 spot for years.

In Asia, Hong Kong rose to become one of the world's top 30 most expensive locations for international assignees, with Tokyo dropping out of the top 10 for the first time in more than a decade, according to the report.

Currently, Hong Kong is in eighth position regionally, overtaking Singapore (31st globally). ECA still cites Tokyo as the most expensive city in Asia, ranking it 11th globally, followed by Seoul and Shanghai at 16th and 18th respectively.

-- The Nation 2014-06-12

[bkkjames]

Let me be the first to say bull.

[Zolt]

Actually the Baht has been pretty flat against major currencies for the past 5-6 months. And if you happen to get paid in THB things have actually gotten a lot more expensive in the last year.

[ezflip]

Weaker baht? Really???

[Thai at Heart]

What got cheaper in daily terms in bangkok now that the baht weakened?

Anyone's mustard or cheese come down in baht?

In USD maybe but that is more than compensated with import duty.

[UbonRatch]

"The baht makes products cheaper, despite higher prices for daily needs such as groceries, fresh produce, drinks and tobacco, clothing, services and eating out."

Slight contradiction there... !!

[davejones23]

Weaker baht? Really???

Against the GBP it's gone from around £1=48 baht to £1=54 baht, so that means I'm 12.5% better off. Most things I spend money on a pretty similar to a year ago.

http://www.bbc.com/news/business/market_data/currency/11/11678/twelve_month.stm

And USD has gone from around 31 to 32.5 baht, so that makes you Americans just under 5% better off, so not as good for you.

Edited June 12, 2014 by davejones23

[davejones23]

Actually the Baht has been pretty flat against major currencies for the past 5-6 months. And if you happen to get paid in THB things have actually gotten a lot more expensive in the last year.

Maybe, but the report is comparing now to 12 months ago, not the last 5-6 months.

[davejones23]

Weaker baht? Really???

Yes, really. Just look at a currency chart for the last 12 months. I only checked USD and GBP, but baht has weakened against both compared to 12 months ago.

[gemini81]

Weaker baht? Really???

Yeah, have a look at exchanges rates there, brother. Been like that for how many months? Sucks when you're exchanging it to Thai baht though, haha. It ain't a perfect world.

[JesseFrank]

Weaker baht? Really???

Against the GBP is gone from around £1=48 baht to £1=54 baht, so that means I'm 12.5% better off. Most things I spend money on a pretty similar to a year ago.

http://www.bbc.com/news/business/market_data/currency/11/11678/twelve_month.stm

And USD has gone from around 31 to 32.5 baht, so that makes you Americans just under 5% better off, so not as good for you.

Most things I spend money on a pretty similar to a year ago.

It's clear that you spend money on different things than the majority here.

[davejones23]

"The baht makes products cheaper, despite higher prices for daily needs such as groceries, fresh produce, drinks and tobacco, clothing, services and eating out."

Slight contradiction there... !!

No contradiction. It's saying prices have gone up but they're cheaper now than 12 months ago for most expats because we've gained more from currency movement than we've lost by price rises.

Jeez, you guys have a tough time with simple facts.

[davejones23]

Weaker baht? Really???

Against the GBP is gone from around £1=48 baht to £1=54 baht, so that means I'm 12.5% better off. Most things I spend money on a pretty similar to a year ago.

http://www.bbc.com/news/business/market_data/currency/11/11678/twelve_month.stm

And USD has gone from around 31 to 32.5 baht, so that makes you Americans just under 5% better off, so not as good for you.

Most things I spend money on a pretty similar to a year ago.

It's clear that you spend money on different things than the majority here.

I've no idea. I think many on here just like to complain. Bangkok is so cheap compared to London that I'm still amazed after all these years. I know very many people that have been to Thailand and haven't heard anyone say it's not cheap. They all rave about how cheap things are. They only people I hear complaining are on this forum. Maybe some have forgotten what prices are like back home or maybe they're poor. Try some of the other cities higher u the list and then maybe you'll know what expensive is. Bangkok is not expensive at all.

[Thai at Heart]

"The baht makes products cheaper, despite higher prices for daily needs such as groceries, fresh produce, drinks and tobacco, clothing, services and eating out."

Slight contradiction there... !!

No contradiction. It's saying prices have gone up but they're cheaper now than 12 months ago for most expats because we've gained more from currency movement than we've lost by price rises.

Jeez, you guys have a tough time with simple facts.

Well that assumes of course that as a true expat you are being paid offshore while living and working in Thailand.

Which of course is illegal, but that's by the by. For a genuine tourist bringing money in from outside it is in USD terms a little cheaper. If you are paid in baht it makes no difference.

That of course doesn't allow for the massive inflationary cost inside Thailand caused by a devaluing baht. Duh.

[Thai at Heart]

Weaker baht? Really???

Against the GBP is gone from around £1=48 baht to £1=54 baht, so that means I'm 12.5% better off. Most things I spend money on a pretty similar to a year ago.

http://www.bbc.com/news/business/market_data/currency/11/11678/twelve_month.stm

And USD has gone from around 31 to 32.5 baht, so that makes you Americans just under 5% better off, so not as good for you.

Most things I spend money on a pretty similar to a year ago.

It's clear that you spend money on different things than the majority here.

I've no idea. I think many on here just like to complain. Bangkok is so cheap compared to London that I'm still amazed after all these years. I know very many people that have been to Thailand and haven't heard anyone say it's not cheap. They all rave about how cheap things are. They only people I hear complaining are on this forum. Maybe some have forgotten what prices are like back home or maybe they're poor. Try some of the other cities higher u the list and then maybe you'll know what expensive is. Bangkok is not expensive at all.

Believe it or not, something's are cheaper back here. Competition on the high street is absolutely fierce and they don't have ridiculous import duties on things.

Not everyone wants to drink bitter and drive a Merc but if you do, doing it here is a bargain.

Even the police drive BMWs for gods sake. My wife noted the other day, Mercs and minis are like Camry's and civics here.

[Lancelot]

Actually the Baht has been pretty flat against major currencies for the past 5-6 months. And if you happen to get paid in THB things have actually gotten a lot more expensive in the last year.

Exactly.

Oil is priced in US dollars, so a weaker baht means every one in Thailand pays more for fuel. Transportation costs affect every thing, so yeah, inflation has ticked up a bit.

This article is spin, as in "Thailand is a bargain, come back tourists, come back"

[Thai at Heart]

Actually the Baht has been pretty flat against major currencies for the past 5-6 months. And if you happen to get paid in THB things have actually gotten a lot more expensive in the last year.

Exactly.

Oil is priced in US dollars, so a weaker baht means every one in Thailand pays more for fuel. Transportation costs affect every thing, so yeah, inflation has ticked up a bit.

This article is spin, as in "Thailand is a bargain, come back tourists, come back"

For tourists it holds in forex terms but makes no allowance for domestic inflation.

[Sandman77]

London is only expensive because rich oligarchies oil kings and global money player, kick out the locals out of there houses and make flat and villa prices high!

I think comparing to eu hk is also cheap

But what exactly is the daily Thai living basket please specify?

After ezb change euro pounds go down, have baht in one week

And soon more!

That's a red alert withdrawal your savings now!

[UbonRatch]

"The baht makes products cheaper, despite higher prices for daily needs such as groceries, fresh produce, drinks and tobacco, clothing, services and eating out."

Slight contradiction there... !!

No contradiction. It's saying prices have gone up but they're cheaper now than 12 months ago for most expats because we've gained more from currency movement than we've lost by price rises.

Jeez, you guys have a tough time with simple facts.

You're on a different planet to me then.

You think everything is cheap here, on a direct price comparison? Did you ever venture to think about the cost of living vs. wages etc.?

Go to Makro and compare the cost of goods you would buy back home. You'll find the majority of good are 2 times the price of back home, and not only 2 times but sometimes 4 times, and they have shot up over the last year. The simple fact is most food is not cheaper than last year AT ALL, and is at least 20% more expensive.

Can you get your head around that simple fact?

[JesseFrank]

Weaker baht? Really???

Against the GBP is gone from around £1=48 baht to £1=54 baht, so that means I'm 12.5% better off. Most things I spend money on a pretty similar to a year ago.

http://www.bbc.com/news/business/market_data/currency/11/11678/twelve_month.stm

And USD has gone from around 31 to 32.5 baht, so that makes you Americans just under 5% better off, so not as good for you.

Most things I spend money on a pretty similar to a year ago.

It's clear that you spend money on different things than the majority here.

I've no idea. I think many on here just like to complain. Bangkok is so cheap compared to London that I'm still amazed after all these years. I know very many people that have been to Thailand and haven't heard anyone say it's not cheap. They all rave about how cheap things are. They only people I hear complaining are on this forum. Maybe some have forgotten what prices are like back home or maybe they're poor. Try some of the other cities higher u the list and then maybe you'll know what expensive is. Bangkok is not expensive at all.

This thread isn't about how prices are in bangkok compared to London, however if you compare like for like Bangkok is much more expensive, but if it is cheaper now compared to a year ago. And the answer is NO.

Almost everything in the supermarkets has gone up at least 10 -15 % over the year, and because they make the volumes smaller to hide the price rise doesn't mean it isn't happening.

Maybe you should try to live here instead of listening to people who come on holiday.

Now if you want to compare prices of goods in London with Bangkok, then use items that are common in London, and by that I mean western food items .

[Thai at Heart]

Weaker baht? Really???

Against the GBP is gone from around £1=48 baht to £1=54 baht, so that means I'm 12.5% better off. Most things I spend money on a pretty similar to a year ago.

http://www.bbc.com/news/business/market_data/currency/11/11678/twelve_month.stm

And USD has gone from around 31 to 32.5 baht, so that makes you Americans just under 5% better off, so not as good for you.

Most things I spend money on a pretty similar to a year ago.

It's clear that you spend money on different things than the majority here.

I've no idea. I think many on here just like to complain. Bangkok is so cheap compared to London that I'm still amazed after all these years. I know very many people that have been to Thailand and haven't heard anyone say it's not cheap. They all rave about how cheap things are. They only people I hear complaining are on this forum. Maybe some have forgotten what prices are like back home or maybe they're poor. Try some of the other cities higher u the list and then maybe you'll know what expensive is. Bangkok is not expensive at all.

This thread isn't about how prices are in bangkok compared to London, however if you compare like for like Bangkok is much more expensive, but if it is cheaper now compared to a year ago. And the answer is NO.

Almost everything in the supermarkets has gone up at least 10 -15 % over the year, and because they make the volumes smaller to hide the price rise doesn't mean it isn't happening.

Maybe you should try to live here instead of listening to people who come on holiday.

Now if you want to compare prices of goods in London with Bangkok, then use items that are common in London, and by that I mean western food items .

Exactly. If the point of being in Thailand is to live on street food and pay 5000 baht for a shoe box to live in, its cheap.

And yes, rents for houses are cheap in comparison to the west, but its getting up there for quality houses in Thailand. But living with something approaching western quality is becoming pricey in Thailand and you have to run the gauntlet of customer service etc.

So having returned I am happy to pay my bit more for shopping in the UK. I can have my run of a massive choice of products from all over the world at reasonable prices. I have q world of internet shopping with low shipping and no customs issues and if something goes wrong, I can complain.

Thailand is what it is, but like for like with the west its no comparison.

I am trying to find the best bottle of wine under £6, in the supermarket. 80 down so far. The leader cost 4.75

[davejones23]

Against the GBP is gone from around £1=48 baht to £1=54 baht, so that means I'm 12.5% better off. Most things I spend money on a pretty similar to a year ago.

http://www.bbc.com/news/business/market_data/currency/11/11678/twelve_month.stm

And USD has gone from around 31 to 32.5 baht, so that makes you Americans just under 5% better off, so not as good for you.

Most things I spend money on a pretty similar to a year ago.

It's clear that you spend money on different things than the majority here.

I've no idea. I think many on here just like to complain. Bangkok is so cheap compared to London that I'm still amazed after all these years. I know very many people that have been to Thailand and haven't heard anyone say it's not cheap. They all rave about how cheap things are. They only people I hear complaining are on this forum. Maybe some have forgotten what prices are like back home or maybe they're poor. Try some of the other cities higher u the list and then maybe you'll know what expensive is. Bangkok is not expensive at all.

Believe it or not, something's are cheaper back here. Competition on the high street is absolutely fierce and they don't have ridiculous import duties on things.

Not everyone wants to drink bitter and drive a Merc but if you do, doing it here is a bargain.

Even the police drive BMWs for gods sake. My wife noted the other day, Mercs and minis are like Camry's and civics here.

But in the UK they have 20% VAT. So little import duty, but make it up on sales tax.

The solution - don't buy imported goods. Why live in Thailand and buy imported goods. May as well stay at home and buy them. Many on here complain about Thailand but still live here. If home is so great, what are they all doing here? Oh I just remembered - complaining 24/7.

[Changoverandout]

£4.75 for a bottle of wine.

950 THB for a 5 litre box of South African red in Nakhon Sawan Tesco.

190/£3.51 per litre so pretty similar to UK (ish)?

Very surprised as all imported stuff here is usually WELL overtaxed.

[davejones23]

Actually the Baht has been pretty flat against major currencies for the past 5-6 months. And if you happen to get paid in THB things have actually gotten a lot more expensive in the last year.

Exactly.

Oil is priced in US dollars, so a weaker baht means every one in Thailand pays more for fuel. Transportation costs affect every thing, so yeah, inflation has ticked up a bit.

This article is spin, as in "Thailand is a bargain, come back tourists, come back"

For tourists it holds in forex terms but makes no allowance for domestic inflation.

Depends where you come from. A UK tourist gets over 12% more baht now than 12 months ago. Inflation in last year is much less than that.

Anyway, don't really care about you lot. It's mega cheap for me after living in London and I have more money than last year. So all good here. If not so good for you, then you have my sympathy.

Edited June 12, 2014 by davejones23

[JesseFrank]

£4.75 for a bottle of wine.

950 THB for a 5 litre box of South African red in Nakhon Sawan Tesco.

190/£3.51 per litre so pretty similar to UK (ish)?

Very surprised as all imported stuff here is usually WELL overtaxed.

What Thai at heart was talking about was wine, where Mont Clair is fruit juice with added acid, which I wouldn't want to call wine actually.

There is a thread about Mont clair somehwere on this forum

[davejones23]

"The baht makes products cheaper, despite higher prices for daily needs such as groceries, fresh produce, drinks and tobacco, clothing, services and eating out."

Slight contradiction there... !!

No contradiction. It's saying prices have gone up but they're cheaper now than 12 months ago for most expats because we've gained more from currency movement than we've lost by price rises.

Jeez, you guys have a tough time with simple facts.

You're on a different planet to me then.

You think everything is cheap here, on a direct price comparison? Did you ever venture to think about the cost of living vs. wages etc.?

Go to Makro and compare the cost of goods you would buy back home. You'll find the majority of good are 2 times the price of back home, and not only 2 times but sometimes 4 times, and they have shot up over the last year. The simple fact is most food is not cheaper than last year AT ALL, and is at least 20% more expensive.

Can you get your head around that simple fact?

Maybe that's where we differ. I don't buy the same food as I used to buy back home, so can't really compare like for like. I bought mostly local food in UK and buy mostly local food here. But dragon fruit in UK 4 years ago was over £2 (100 baht). Costs 10-20 baht here. Coconut in London £3-5. Here 10-20 baht. Or sometimes free straight from the tree. But those are cheaper here because they're imported into UK. Likewise UK food will be more expensive here than in UK.

For me... London rent £2,000 for 1-bed place. Bangkok - similar condo £500. So a saving of £1,500 a month. Water - cheaper, Electricity - cheaper. Coffee in a cafe - cheaper. Local fruit and veg - cheaper. Beer - cheaper. Public transport - cheaper. Nice restaurant £100 in London, £20-30 here. Petrol - cheaper here. Car insurance - cheaper here. I've heard that cars and schooling are more expensive, but I don't have kids or a car, so doesn't affect me. I spend under £2K a month here in total. In UK I spent £4-5K a month for a similar lifestyle. So for me it's definitely cheaper.

What's more expensive for people that think it's more expensive here? Apart from imported stuff, I really can't think of anything that's more expensive. Seriously. Please enlighten me

I love Thai food, which is one of the reasons I moved here, so maybe save there while others buy imported food.. Never been inside a Makro store, so no idea of their prices.

[bkkjames]

"The baht makes products cheaper, despite higher prices for daily needs such as groceries, fresh produce, drinks and tobacco, clothing, services and eating out."

Slight contradiction there... !!

No contradiction. It's saying prices have gone up but they're cheaper now than 12 months ago for most expats because we've gained more from currency movement than we've lost by price rises.

Jeez, you guys have a tough time with simple facts.

You're on a different planet to me then.

You think everything is cheap here, on a direct price comparison? Did you ever venture to think about the cost of living vs. wages etc.?

Go to Makro and compare the cost of goods you would buy back home. You'll find the majority of good are 2 times the price of back home, and not only 2 times but sometimes 4 times, and they have shot up over the last year. The simple fact is most food is not cheaper than last year AT ALL, and is at least 20% more expensive.

Can you get your head around that simple fact?

Maybe that's where we differ. I don't buy the same food as I used to buy back home, so can't really compare like for like. I bought mostly local food in UK and buy mostly local food here. But dragon fruit in UK 4 years ago was over £2 (100 baht). Costs 10-20 baht here. Coconut in London £3-5. Here 10-20 baht. Or sometimes free straight from the tree. But those are cheaper here because they're imported into UK. Likewise UK food will be more expensive here than in UK.

For me... London rent £2,000 for 1-bed place. Bangkok - similar condo £500. So a saving of £1,500 a month. Water - cheaper, Electricity - cheaper. Coffee in a cafe - cheaper. Local fruit and veg - cheaper. Beer - cheaper. Public transport - cheaper. Nice restaurant £100 in London, £20-30 here. Petrol - cheaper here. Car insurance - cheaper here. I've heard that cars and schooling are more expensive, but I don't have kids or a car, so doesn't affect me. I spend under £2K a month here in total. In UK I spent £4-5K a month for a similar lifestyle. So for me it's definitely cheaper.

What's more expensive for people that think it's more expensive here? Apart from imported stuff, I really can't think of anything that's more expensive. Seriously. Please enlighten me

I love Thai food, which is one of the reasons I moved here, so maybe save there while others buy imported food.. Never been inside a Makro store, so no idea of their prices.

I think the point is 90% of Expats here are not paid in foreign currency. The title of article suggests it is cheaper now for Expats because of the baht's devaluation. We don't believe it to be so. capece?

[davejones23]

Against the GBP is gone from around £1=48 baht to £1=54 baht, so that means I'm 12.5% better off. Most things I spend money on a pretty similar to a year ago.

http://www.bbc.com/news/business/market_data/currency/11/11678/twelve_month.stm

And USD has gone from around 31 to 32.5 baht, so that makes you Americans just under 5% better off, so not as good for you.

Most things I spend money on a pretty similar to a year ago.

It's clear that you spend money on different things than the majority here.

I've no idea. I think many on here just like to complain. Bangkok is so cheap compared to London that I'm still amazed after all these years. I know very many people that have been to Thailand and haven't heard anyone say it's not cheap. They all rave about how cheap things are. They only people I hear complaining are on this forum. Maybe some have forgotten what prices are like back home or maybe they're poor. Try some of the other cities higher u the list and then maybe you'll know what expensive is. Bangkok is not expensive at all.

This thread isn't about how prices are in bangkok compared to London, however if you compare like for like Bangkok is much more expensive, but if it is cheaper now compared to a year ago. And the answer is NO.

Almost everything in the supermarkets has gone up at least 10 -15 % over the year, and because they make the volumes smaller to hide the price rise doesn't mean it isn't happening.

Maybe you should try to live here instead of listening to people who come on holiday.

Now if you want to compare prices of goods in London with Bangkok, then use items that are common in London, and by that I mean western food items .

I've lived in Thailand for over 4 years, so I'm well aware of prices. I mentioned friends that have holidayed here because they all agree with me. I've never known a single person to come here on holiday and say... wow, Thailand was expensive. Many come here because it's cheap. That is one of the attractions for many visitors. And for many expats.

[davejones23]

I think the point is 90% of Expats here are not paid in foreign currency. The title of article suggests it is cheaper now for Expats because of the baht's devaluation. We don't believe it to be so. capece?

If they are paid in baht and haven't had a pay rise, then of course they won't be better off. But surely it's up to them to negotiate their annual salary based on salary back home. So each year, or more often, your salary in baht would be re-aligned to current exchange rates.

And for new expats, they should be getting a better rate than last year's expats. There article is obviously comparing different cities now compared to where they were 12 months ago, with exchange rates and inflation taken into account. It's not trying to compare expats that are on the same wage as last year and paid in Thai baht. It's more a guide to the ebb and flow of how expensive places are.Maybe look at the longer term trend. If $1 was equally 100 baht tomorrow, then obviously existng expats being paid in baht wouldn't be any better off if they didn't get a pay rise. But it's pretty obvious new expats would be and also those who had the sense to up their salary at next review. I don't see how else they could complete the survey.

But as mentioned above, if it's too expensive here, then why stay? Move to one of the countries/cities on the list that are cheaper.

As an aside, many in the UK tell me how expensive it's got these days. But many here claim it's cheap. What's cheap and expensive is very individual, depending on what you earn and how you spend it, Someone earning 5K baht all their life and then earning 20K baht would feel super rich. But someone earning 100K baht could feel poor if they used to earn 500K baht.

For me, it's way, way cheaper than UK and it has also got cheaper for me in the last year. Those are the facts for me. If they're different for you, then so be it.

[Changoverandout]

£4.75 for a bottle of wine.

950 THB for a 5 litre box of South African red in Nakhon Sawan Tesco.

190/£3.51 per litre so pretty similar to UK (ish)?

Very surprised as all imported stuff here is usually WELL overtaxed.

What Thai at heart was talking about was wine, where Mont Clair is fruit juice with added acid, which I wouldn't want to call wine actually.

There is a thread about Mont clair somehwere on this forum

Exactly, Mont Clare is terrible. There is a really good Chilean red at Big C for about 1200 fo 3 litres so a lot more but the SA 5 litre 13% is anything but fruit juice!