Inflation : more prices controls to come…

Inflation goes up. The Stupidity Index too.

The Commerce Ministry is considering a measure to monitor 373 goods’ prices, in an attempt to set reasonable prices based on actual production costs. If any of the items have low production costs, the price must be cut relatively.

More Zimbabwe style policies… That could lead to the same effects… Market distorsions… shortages… secondary effects… hoarding… smuggling… black market…

And you’ll see that soon, more than to declare inflation illegal, they will ask for compulsory prices decreases. ๐Ÿ˜‰

Furthermore, it is studying the effects of the sugar price increase, minimum wage rate adjustments, government officials’ salary increases, and the lower price of imported raw material due to the strengthened baht.

Sure… let’s “study”… I’m wondering what they are going to find. ๐Ÿ˜‰

Internal Trade Department Director-General, Yanyong Puangrat confirmed that the department will not consider condensed milk and soft drinks price increases, after the entrepreneurs claimed that the sugar price hike is affecting their sales. He explained that condensed milk production costs were affected by only 3.92 per cent, with soft drinks by 2.45 per cent and canned fruits by 1.85 per cent.

The calculations of the thai officials are funny… and probably half true (“production costs” can be variable and depend on the perimeter…). The soft drinks industry claims that the surge of sugar price (+37 %) will hurt.

Anyway… over and over, the only answer from the thai government to the inflation issue, is short term.

The question is : what will happen after ?

It’s just unsustainable.

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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