Oil price slide to further tame inflation; Cooked Thai food price yet to see decrease

[webfact]

Oil price slide to further tame inflation
Petchanet Pratruangkrai
The Nation

Cooked food price yet to see decrease

BANGKOK: -- Inflation is seen moderating even more this year to 1.8-2.5 per cent from 1.89 per cent last year thanks to benign oil prices and the restructuring of fuel costs, according to the Commerce Ministry.

At 0.60 per cent year on year, the Consumer Price Index in December rose at its slowest in 62 months since October 2009 on falling oil prices. Compared with November, the CPI was down 0.50 per cent.

Whole-year inflation of 1.89 per cent was unexpected. The ministry had forecast 2-2.8 per cent for 2014.

"Thailand's inflation could be lower than expected next year since oil prices are much lower in the world market. The inflation forecast of 1.8-2.5 per cent could be revised down to only 1.5-2 per cent if the oil price continues sliding throughout this new year," said Somkiat Triratpan, inspector-general of the ministry.

Inflation here has been following the global trend as oil prices are easing around the world. Thailand last year ranked the fourth-lowest in inflation in Asia after Singapore, Taiwan and mainland China.

The ministry's inflation outlook assumes the Dubai oil price at US$90-$110 per barrel for the whole of 2015. Last month, the food and beverage price index was up 3.16 per cent, while the non-food index headed down 0.74 per cent.

Inflation in the first quarter of this year is projected at 0.11 per cent on expected lower oil prices, electricity bills and crop prices.

However, some goods and services have still been increasing and will pressure inflation in the following years - mainly cooking gas, taxi fares, rent and cooked foods.

According to the ministry's survey, the price of cooked food has not decreased despite the lower cost of raw materials because businesses have faced slowing sales, so they have to raise prices to cover their costs of production. For instance, a fast-food vendor said he had to raise his prices to Bt40 per dish since consumers had pulled back on purchases, while traders still had to shoulder higher outlays for rent and cooking gas.

Last month, of the ministry's inflation basket of 450 items, prices increased for 172 components, such as rice, flour, cooking oil, taxi rides, fast food and cooked food, while 181 remained unchanged and 97 decreased from the previous month. Consumers paid less for eggs, shrimp, air tickets and fuel. Core inflation, which excludes volatile fuel and food prices, was 1.59 per cent last year, within the central bank's target range of 0.5-3 per cent.

Source: http://www.nationmultimedia.com/business/Oil-price-slide-to-further-tame-inflation-30251240.html


-- The Nation 2015-01-06

[Kooweerup]

the price of cooked food has not decreased despite the lower cost of raw materials because businesses have faced slowing sales, so they have to raise prices to cover their costs of production.

This seems to be the way Thais work, if you are selling then raise the prices and sell less.

Edited January 5, 2015 by Kooweerup

[chainarong]

Has the price at the bowser dropped yet ???

[Valentine]

Has the price at the bowser dropped yet ???

There have been several price drops. I use diesel & it has gone down by about 4 Baht/litre.

[worgeordie]

Simple , prices go up immediately,come down very

slowly ,if at all,

regards Worgeordie

[ezzra]

And yet, air fares and fuel surcharges remain the same.... the airlines and the vast interests

of many other people/business benefiting from high fares cartels is at work.....

[chotthee]

And yet, air fares and fuel surcharges remain the same.... the airlines and the vast interests

of many other people/business benefiting from high fares cartels is at work.....

And Thai taxi just put up its price. <deleted>?

[rethaier]

To expect a vendor to reduce prices when his costs go down is simply naivety. These greedy bastards only see a reduction in cost as more profit. Look at them, business is slow so raise the price - backward thinking logic in it's finest form.

[thailand49]

Although gas has decrease if you shop for food on a regular basis, the prices have risen, pork which was rising the fast prior to the gas prices being high still have not decreased.

As for Thai cooking food decrease do not hold your breath, The cooking gas that majority of Thai purchased which is not the same as your auto gas has not come down in fact continues to rise. CNG, LPG, all continue to go up.

[webfact]

related topic:

Ready to eat meal price surges in Thailand due to the rise in ingredients
http://www.thaivisa.com/forum/topic/789526-ready-to-eat-meal-price-surges-in-thailand-due-to-the-rise-in-ingredients/

[mrtoad]

Will this reduce the price of the 99 Baht breakfast?

[ATF]

mrtoad, on 06 Jan 2015 - 12:57, said:

Will this reduce the price of the 99 Baht breakfast?

The 99 Baht scam breakfast is here to stay. The sausages will have more gristle.

[rickirs]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

And yet, air fares and fuel surcharges remain the same.... the airlines and the vast interests

of many other people/business benefiting from high fares cartels is at work.....

Many airlines hedge fuel prices with futures contracts, ie., 60-90 day terms. If market prices actually drop below the contract price, they really don't get any savings as they are obligated at the contract price.

[rickirs]

Enough about inflation. Thailand is on the precipice of deflation and negative GDP growth. Export growth is almost flat and the Prayuth government has been relunctant to boost the economy with any significant economic stimulus to create NEW jobs and businesses. Lack of inflation at this time in Thailand is a bad omen for its economy.

[45slap]

Just get more tourists to shake down.

[ThePlant]

Never mind oil. What happens when the price of a sweaty breakfast in Pattaya falls to 49B?

[mrtoad]

Never mind oil. What happens when the price of a sweaty breakfast in Pattaya falls to 49B?

Konying will be happy

[thailiketoo]

the price of cooked food has not decreased despite the lower cost of raw materials because businesses have faced slowing sales, so they have to raise prices to cover their costs of production.

This seems to be the way Thais work, if you are selling then raise the prices and sell less.

That is Thai Visa myth #467. If it were true cooked food prices would have gone up.