Living expenses up, household economic index down

[Lite Beer]

Living expenses up, household economic index down

BANGKOK, 9 May 2015 (NNT) - Analysts indicated the rising living expenses dragged down the household economic index, hitting the lowest point in 5 months, warning the public of creating new debts.

According to the Kasikorn Research Center (KResearch), the Household Economic Index in April was at 45.8 points, the same as that in the previous month. The center expected the figure for the next 3 months would be at 46.5, the lowest in 5 months.

KResearch indicated that the figure signals household purchasing power was still recovering, due to the concerns over high commodity prices, living expenses, debts, and income.

KResearch said that, if the economy continues to slump, more pressure would be definitely felt on household living expense in the next few months especially in the agricultural sector.

Moreover, the index related to consumers’ ability to pay debts for the next 3 months was likely to stay in the negative territory, the Kresearch pointed out, saying the figure would be lower than 50 points which reflects consumers’ worries about living expenses and new debts

-- NNT 2015-05-09

[trogers]

In most developed countries with high household debts, an inflation is welcomed. Why? Most of their debts are tied to assets that would see increasing values.

But not Thailand when most debts are spent on consumption.

[Srikcir]

Recall:

The latest survey conducted by the Thai Chamber of Commerce has revealed worrying revelations that 94% of Thai workers remain in heavy debt and of these 60% are unofficial loans.

On average, this is amounted to a debt burden of 117,839 baht per household and will require around 7,300 baht payments every month.

As deflation settles in over the next quarter, loan defaults and unemployment will increase. GDP will decrease by 0.5% compared to 2015Q1.

[quidnunc]

In most developed countries with high household debts, an inflation is welcomed. Why? Most of their debts are tied to assets that would see increasing values.

But not Thailand when most debts are spent on consumption.

Actually, no. The main reason inflation is welcomed is that it makes repaying debts easier. Provided of course, that wages are at least keeping pace with inflation.

[trogers]

In most developed countries with high household debts, an inflation is welcomed. Why? Most of their debts are tied to assets that would see increasing values.

But not Thailand when most debts are spent on consumption.

Actually, no. The main reason inflation is welcomed is that it makes repaying debts easier. Provided of course, that wages are at least keeping pace with inflation.

Not completely true. During prolonged deflation, asset values would fall below outstanding debts - negative equity value. Force sales might result.

[thaibeachlovers]

In most developed countries with high household debts, an inflation is welcomed. Why? Most of their debts are tied to assets that would see increasing values.

But not Thailand when most debts are spent on consumption.

Actually, no. The main reason inflation is welcomed is that it makes repaying debts easier. Provided of course, that wages are at least keeping pace with inflation.

That doesn't help many North Americans who have seen a decrease in take home pay.

As for Thailand, it's the usual rubbish about increased costs when basics have not increased much. I paid 20 baht for fried rice dish in 1996 and same now costs 30 baht- not a big increase in 19 years. Housing is cheap unless wanting flash. An "apartment" in a Thai accomodation building can be rented for 5,000 a month, less outside big cities.

It's only the wannabes that are seriously hurting.

However, debt is a problem. I have a battle to prevent my Thai wife from going into debt, and I understand it is very easy to get credit now.

[worgeordie]

Household debt is not only a Thai thing,most of the Western World,

seems to be up to their eyes in debt,and people will continue to

spend more than they earn,while the prudent of us who live within

our means,trying to save for the future,are not taken into account,

while those that overspend ,get themselves into massive debt,are

the ones who seem to get all the help,low interest rates been one

method.

Governments are not providing a good example to their populations,

as they too are over spending,who holds all this debt is a mystery to

me,but i think it is not going to end well.

regards Worgeordie

[trogers]

Household debt is not only a Thai thing,most of the Western World,

seems to be up to their eyes in debt,and people will continue to

spend more than they earn,while the prudent of us who live within

our means,trying to save for the future,are not taken into account,

while those that overspend ,get themselves into massive debt,are

the ones who seem to get all the help,low interest rates been one

method.

Governments are not providing a good example to their populations,

as they too are over spending,who holds all this debt is a mystery to

me,but i think it is not going to end well.

regards Worgeordie

Money is principally computer generated. Credit and debts are held in data banks and used by highly leveraged speculative funds.

[thaibeachlovers]

Household debt is not only a Thai thing,most of the Western World,

seems to be up to their eyes in debt,and people will continue to

spend more than they earn,while the prudent of us who live within

our means,trying to save for the future,are not taken into account,

while those that overspend ,get themselves into massive debt,are

the ones who seem to get all the help,low interest rates been one

method.

Governments are not providing a good example to their populations,

as they too are over spending,who holds all this debt is a mystery to

me,but i think it is not going to end well.

regards Worgeordie

Now the scum politicians have reduced interest to zero on savings it is a disincentive to save, plus it is becoming a threat that evil governments are now thinking they can steal people's money from bank accounts to make up for their incompetence in running up government debt.

Of course it's not going to end well for Joe Average, but the filthy pigs that got us into this situation will be all right Jack, as they give themselves big pensions.

[thaibeachlovers]

Household debt is not only a Thai thing,most of the Western World,

seems to be up to their eyes in debt,and people will continue to

spend more than they earn,while the prudent of us who live within

our means,trying to save for the future,are not taken into account,

while those that overspend ,get themselves into massive debt,are

the ones who seem to get all the help,low interest rates been one

method.

Governments are not providing a good example to their populations,

as they too are over spending,who holds all this debt is a mystery to

me,but i think it is not going to end well.

regards Worgeordie

Money is principally computer generated. Credit and debts are held in data banks and used by highly leveraged speculative funds.

In easily understood terms, the crooks are running the show now.

Edited May 10, 2015 by thaibeachlovers

[trogers]

Household debt is not only a Thai thing,most of the Western World,

seems to be up to their eyes in debt,and people will continue to

spend more than they earn,while the prudent of us who live within

our means,trying to save for the future,are not taken into account,

while those that overspend ,get themselves into massive debt,are

the ones who seem to get all the help,low interest rates been one

method.

Governments are not providing a good example to their populations,

as they too are over spending,who holds all this debt is a mystery to

me,but i think it is not going to end well.

regards Worgeordie

Money is principally computer generated. Credit and debts are held in data banks and used by highly leveraged speculative funds.

In easily understood terms, the crooks are running the show now.

And the irony, they are democratically elected, or being protected by those elected.

[Nobb]

No problem about debt to Thai people. Charge the debt to one credit card this month and when payment is due charge it to the other credit card. Most Thais are driving cars they can not afford and living in houses they can not afford. Not the government fault that they do not how to spend money but very good at barrowing money!

[wolfmanjack]

In most developed countries with high household debts, an inflation is welcomed. Why? Most of their debts are tied to assets that would see increasing values.

But not Thailand when most debts are spent on consumption.

Actually, no. The main reason inflation is welcomed is that it makes repaying debts easier. Provided of course, that wages are at least keeping pace with inflation.

That doesn't help many North Americans who have seen a decrease in take home pay.

As for Thailand, it's the usual rubbish about increased costs when basics have not increased much. I paid 20 baht for fried rice dish in 1996 and same now costs 30 baht- not a big increase in 19 years. Housing is cheap unless wanting flash. An "apartment" in a Thai accomodation building can be rented for 5,000 a month, less outside big cities.

It's only the wannabes that are seriously hurting.

However, debt is a problem. I have a battle to prevent my Thai wife from going into debt, and I understand it is very easy to get credit now.

I don't know about in the cities but in my area the 1 room apartments most minimum wage workers rent went from 1500 baht before the minimum wage increase to 2500 baht per month after the increase while the houses in the 4k to 5k range stayed the same. At the same time most of the local noodle and rice dish shops raised their price by 5 baht.

rice and most meats all increased in price though. pork went from 90 baht a kg to 150 baht a kg but is back down to a20 baht per kg. chicken went from around 50 baht a kg up to 90 baht a kg and the last time i baht it was around 70 baht a kg.

A lot of the fruits that were 15 baht kg in season are now 30 baht a kg in season.

[thaibeachlovers]

In most developed countries with high household debts, an inflation is welcomed. Why? Most of their debts are tied to assets that would see increasing values.

But not Thailand when most debts are spent on consumption.

Actually, no. The main reason inflation is welcomed is that it makes repaying debts easier. Provided of course, that wages are at least keeping pace with inflation.

That doesn't help many North Americans who have seen a decrease in take home pay.

As for Thailand, it's the usual rubbish about increased costs when basics have not increased much. I paid 20 baht for fried rice dish in 1996 and same now costs 30 baht- not a big increase in 19 years. Housing is cheap unless wanting flash. An "apartment" in a Thai accomodation building can be rented for 5,000 a month, less outside big cities.

It's only the wannabes that are seriously hurting.

However, debt is a problem. I have a battle to prevent my Thai wife from going into debt, and I understand it is very easy to get credit now.

I don't know about in the cities but in my area the 1 room apartments most minimum wage workers rent went from 1500 baht before the minimum wage increase to 2500 baht per month after the increase while the houses in the 4k to 5k range stayed the same. At the same time most of the local noodle and rice dish shops raised their price by 5 baht.

rice and most meats all increased in price though. pork went from 90 baht a kg to 150 baht a kg but is back down to a20 baht per kg. chicken went from around 50 baht a kg up to 90 baht a kg and the last time i baht it was around 70 baht a kg.

A lot of the fruits that were 15 baht kg in season are now 30 baht a kg in season.

Fair enough. Bit of price gouging in the housing sector, by the look of it.

As for meat prices- shouldn't worry most Thais as they are all good Buddhists and don't eat meat .