Inflation in Thailand...

[Road Runner]

(rossco @ Jul. 22 2008,14:41) they do not speculate on house prices - they actually just live in them - surprise - just like our forebears did!

Excellent point Rossco!

RR.

[SukhumvitRoad]

(dummy_plug @ Jul. 22 2008,16:18) Wow...do you even know what JLL does? Or do you live under a rock in BKK?

What did I say that would lead you to question, quite rudely, whether I know what Jones Lang does? That I view them as primarily estate agents hustling property rather than as dispassionate observers of the marketplace?

On reflection, my selection of the word naive to describe you might well have been far too generous. Given the overall level of most of your posts, I guess I shouldn't be surprised at you shooting off your mouth like this. Not to put too fine a point on it, but.....get stuffed.

[rxpharm]

Some interesting points brought for discussion, but a few things that have not been brought up.

Higher transportation costs - everything that is sold in Thailand has to be transported - food, clothes, electronics, etc. Transportation costs have gone up and prices have gone up accordingly to cover these costs.

Higher production costs for food, many manufactured goods. Increased oil prices means higher costs for fertilizer, insecticides, weed killer, animal feed, etc.

As for not noticing increased prices - the next time you go into your favourite shop, pay attention to the costs and think about what you just paid a year ago. I was in a Thai 7/11 today and I see they have increased the prices for all their burgers by 5-10%. Many fast food places have also increased prices and/or reduced their portions.

I would not be surprised if most food stuffs have gone up a similar amount in the grocery stores.

This definitely will impact the average Thai, especially since their salaries are not going to go up.

[kahuna]

(rossco @ Jul. 22 2008,22:41) You do not 'make' money on your home/house until you actually sell it

we will see increases, in the cost of living, in Thailand, BUT not fueled by the excesses of the West.

That's not true, you can make a great deal of money on real property without actually selling it...

We also have to keep in mind that the Thai Baht is tied directly to the US Dollar...For whatever it's worth, there was a piece in the Bangkok Post this morning predicting that inflation in Thailand will skyrocket in coming months...

http://www.bangkokpost.com/topstorie....php?id=129153

[SukhumvitRoad]

(kahuna @ Jul. 30 2008,17:58)
...We also have to keep in mind that the Thai Baht is tied directly to the US Dollar

Whaaaaaaaat? Where in the world did you come up with that?

Good Lord. As much as I enjoy most of the discussions on this board, I hope nobody actually believes even half the uninformed rubbish that turns up in them.

[kahuna]

Read the article in the Bangkok Post...

I assume that even though you are an arrogant asshole you can read...

[PigDogg]

To me, the listed condo prices in Pattaya seem quite high compared to rent for similar units.

In the real estate mags, I never see the monthly maintenance fee mentioned. What would a typical monthly maintenance charge be for a 1 million baht condo?

[janabiyah]

(Road Runner @ Jul. 22 2008,22:58)

(rossco @ Jul. 22 2008,14:41) they do not speculate on house prices - they actually just live in them - surprise - just like our forebears did!

Excellent point Rossco!

RR.

Didn't Goldilocks find a house with Three Bears?

So I guess they all didn't have forebears

[PigDogg]

So it wasn't five girls it was four bears you did on Soi 6 Kuhn J?

[janabiyah]

(PigDogg @ Jul. 31 2008,00:05) So it wasn't five girls it was four bears you did on Soi 6 Kuhn J?

You have a good memory PD.

Yes, a great moment in my life, Roxy Bar, 2.30 am

I think it was five bears, now that's inflation

[SamplerDoc]

Inflation is paying for 5 bears and only getting two

[rxpharm]

An article from the Bangkok Post, Aug. 2/08 re: inflation in Thailand. Here's the link:
Inflation reaches 9.2% for July

Inflation reaches 9.2% for July
7.7% average foreseen if oil stays at $120-130

PHUSADEE ARUNMAS

Thailand's inflation accelerated at the fastest pace in a decade in July, gaining 9.2% from the same month a year ago due to surging oil and food prices.


Fuel prices rose 46.9% year-on-year in July, leading prices of non-food goods to climb 7.6%.


The food sector increased 11.8%, led by rice, flour and cereal products, which rose 33.5%. Meat prices were up 19.2% and seasonings and condiments rose 16.3%.


''The main driver of rising inflation in July was oil prices despite the prices dropping by the middle of the month in line with world prices,'' said Pairoa Sudsawarng, deputy secretary of the Commerce Ministry.


''If oil prices in the second half of this year are around 120 to 130 dollars per barrel, this year's average inflation may exceed 7.7%.''


Average retail fuel prices rose to 38.70 baht per litre in July compared with 27.76 baht in the same month last year. Core inflation, which excludes energy and food prices, rose 3.7% year-on-year in July against 3.6% in June due to finished food, construction materials and public transport services.


On a monthly basis, consumer prices rose 0.3%, with the food index increasing 0.3% primarily because of an increase in prices of fresh fruits, fish and other seafoods.


Non-food prices increased a mere 0.4% in July from 1.9% in June, as domestic petrol prices dropped at mid-month and excise tax cuts for petrol as part of the government's anti-inflation programme started on July 25.


Core inflation in July was 0.2% month-on-month.


According to Mrs Pairoa, inflation for the year to date rose 6.6% against 6.3% in June mainly due to a rise in oil prices, with the food index increasing 9.3% and non-food up 5.1%.


The inflation rate in the remaining five months should drop given the government's six-pronged anti-inflation package that took effect yesterday, said Mrs Pairoa.


She said plans were also afoot for the ministry to delay any price increase for key items as a way to temper the cost of living.


Despite inflationary pressure, the official said the ministry still maintained an inflation target for this year in the range of 5% to 5.5% on the assumption that the prices of crude oil would average US$105 per barrel.


Average prices of crude oil for the first seven months were $107.92. Prices as of July 30 stood at $119.64 per barrel.


''The inflation rate is not that worrisome, as the world's oil prices should drop in the remaining months, while there is increasing use of oil substitutes such as LPG (liquefied petroleum gas), NGV (natural gas for vehicles) and gasohol.''


Amara Sriphayak, a senior director of the Bank of Thailand, said July's inflation wasn't too high, given the fact that it rose from a relatively low base in the same period last year.


She added a continued drop of oil prices also helped ease the inflationary pressure.


''It would be good if world oil prices were to stand at the current level,'' she said. On Monday, the central bank said it expected inflation across the year to average 7.5% to 8.8% _ up from previous estimates of 4.0% to 5.0%.


Nipon Poapongsakorn, an economist at Thammasat University, said he believed the inflation rate for the entire year should be 8-9% as food prices started to stabilise due to higher productivity and easing oil prices.

[LB_better_than_GG]

Holy shit reading this tread is like reliving my Economics 101 lectures at Uni.