Consumers worried about rising cost of living: survey
Thai consumers are complaining that their income does not rise enough to cover the speedily rising cost of living caused by the domino effect of rising production costs from the increase in the minimum wage, although the government has put in place a vari
The University of the Thai Chamber of Commerce (UTCC) survey showed yesterday that consumers want the government to freeze prices of essential goods to alleviate the rising cost of living.
A survey of 1,205 respondents showed that 54.4 per cent of consumers foresee prices of goods increasing this year, 37.5 per cent foresee prices remaining unchanged, and the remaining see goods prices dropping. They believe the rising prices result mainly from increased labour wages, followed by higher production costs and rising fuel prices.
About 62 per cent of respondents said they have insufficient income to cover their daily spending, while only 38.4 per cent said they have adequate income.
Thanavath Phonvichai, director at the UTCC’s Economic and Business Forecasting Centre, said that consumers are greatly concerned about the higher cost of living as they feel uncertainty amid the economic slowdown. As a result, consumers will have less savings due to increased expenditure.
To solve the problem of higher cost of living, most respondents said they have to limit the volume of purchasing, spend their savings, and borrow money from banks and underground loans.
Asked about the government’s measures to control the prices of goods, consumers shared similar views that they want the price control measure to be extended once it ends in September this year. They said the government may allow increase in the retail price of some products if they find the cost of production has gone up.
Most respondents agree with the government’s price control measure. Less than 5 per cent did not agree with the price control measure.
However, consumers have less knowledge of the government’s measures to control the cost of living under its "Blue Flag" project and "Raan Thook Jai" – a shop that sells essential goods at cheaper prices directly to consumers.
Consumers said that they have no idea where the "Blue Flag" Project outlets are or the "Thook Jai" shops located. To increase efficiency of the project, they called on the government to increase advertising and public relations efficiency.
Thanavath gave the government seven out of 10 points for its management of the cost of living. He said the current measures are quite effective in controlling prices and creating an alternative for consumers by not intervening in the market mechanism.
He said the falling fuel price will help rein in the rising prices in the remaining months. This will ensure that the inflation will be within the Commerce Ministry’s projection at 3.3-3.8 per cent this year.
"Stable inflation will give the Bank of Thailand room to cut the policy interest rate by another 50 basis points this year, to help enterprises and stimulate economic growth," he added.
