Pay attention and you see that prices are rising
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Re: "Prices are rising only for spendthrifts", Letters, June 13.
Niels Jeffreys takes umbrage at my observation that prices are still rising. He bases his opinion that prices are stable on three factors:
First, declining energy prices. This temporary decline didn’t escape my attention, but after a fall of 50 per cent, prices have gone up again by about 40 per cent. As I wrote, this price fall was a boon, but its deflationary effect doesn’t mean Thailand has fallen into a deflationary cycle. Jeffreys presupposes that energy costs are a significant part of the household budget (which is not true for the majority) and that every family owns a car, which (at least where I live) is far from true.
Also, the fall in transport costs has not translated to lower prices. Food sold in local markets – eggs, poultry, pork, fish, vegetables, fruit, etc – is produced by locals and, as such, the transport costs are negligible.
Jeffreys also mentions that property prices across the world are stable. Evidently he didn’t read The Economist of two weeks ago, which features a graphic showing that US house prices have climbed steeply back to pre-financial-crisis levels. Here in Isaan, property prices are rising practically by the day.
Secondly, he says, food is a bargain in Thailand. The truth of this statement is relative. Compared with prices in Europe, food is generally cheaper in Thailand, but then it’s more expensive than in Myanmar and Laos. One frequently heard complaint here is that, while prices seem stable, the size of portions has decreased considerably.
Thirdly he refers to depreciation of the baht. In my letter I wrote that one has to be wary over claims that the baht is depreciating. That claim is true from a dollar standpoint, but not true for the euro, rouble and other currencies. How Jeffreys concluded from this that I want to measure the Thai economy according to Europe’s is beyond me.
Pertinent here is the experience of my wife, who, in her position as a local official, has met hundreds of housewives this year. Almost all complain about rising living costs. Jeffreys’ statement that prices are rising only for spendthrifts is, to put it politely, ridiculous, as is his charge that my evidence is “anecdotal”. Reading is an art – one which seems to be fast disappearing.
Egon
