Inflation in Thailand

[Guest fountainhall]

I am never quite sure what to make of inflation statistics. The media inform us that annual inflation is now somewhere in the region of 3%, partly on the back of continually high oil prices. We are also told that wage rises and strengthening domestic demand may add to inflationary pressure later this year. Even so, Thailand's inflation is said to be lower than many neighbouring countries.

 

But that's not what my wallet tells me! In my small BKK condo, the management fees have increased by almost 20% in just 3 years, and this despite a cut-back in some of the services. In the supermarket, I notice some items have increased well over 3%. Admittedly, many are imported goods and the Baht has fallen a bit in recent months. But when the Baht rose quite dramatically last year, I noticed no reduction in prices!

 

I have friends who moved to BKK about 10 years ago to retire. With their income drastically reduced due to the world economic recession and prices on the rise here, they are now seriously looking at the possibility of having to return to the UK.

 

Are prices noticeably higher elsewhere in the country?

[Bob]

It seems to me that prices on just about everything have slowly creeped up in Chiangmai, most likely like everywhere else. Food (excepting, perhaps, for raw foods you pick up at public markets or roadside stands) prices seem to be leading the charge which would be similar to what's happeing in the states).

 

But since the late 90's, the biggest "price increaser" has been the exchange rate. Those heady days "40+ baht to the dollar" are long gone.

[floridarob]

Generally when inflation costs are calculated it's done by "big ticket items" or major purchases, not everyday living expenses.... I just learned this recently when I was questioning the same thing here in America....doesn't seem to make sense to me though, unless this is how the politicians want it?