Business
Phuket Business: Island’s inflation skyrockets

PHUKET: Not only does Phuket continue its reign as the most expensive (consumer) province in Thailand, but the island province’s rate of inflation doubles that of the national average, recent economic data shows.
The Phuket Commerce Office, in collaboration with the Phuket provincial government and the Commerce Ministry’s Information Office and Bureau of Trade and Economic Indices, recently published the province’s Consumer Price Index (CPI-P) report for October 2012.
The CPI-P monthly report for Phuket surveys 256 consumer goods and services – covering everything from food, beverages, apparel, housing and personal healthcare to vehicles, transport, communications, entertainment, media, education, religion, tobacco and alcohol.
Comparing current prices with those of 2007 as a base year (100 points), Phuket’s CPI-P rose to 126.6 points last month.
In other words, the overall cost of living on the island has jumped by 26.6% over the last five years, which translates to an average inflation rate of 5.3% per annum.
This is compared to the national 5-year inflation rate average of 16.8% or 3.3% per annum.
Though Phuket prices continue to surge relentlessly, there was some minor relief in the short run, with last month’s CPI-P declining month-on-month (m-o-m) from September by 0.4 percentage points.
However, the CPI-P last month still jumped by 5.1 percentage points year-on-year (y-o-y) from October, 2011. Furthermore, when comparing the first ten months of 2012 with the same period in 2011, the CPI-P rise was even higher, peaking by 5.9 percentage points, y-o-y.
This equates to nearly double the national inflation rate over the same period, which stood at 2.9%.
Oct vs Sep – M-o-M
The 0.4% m-o-m drop in the CPI-P was a result of the overall price for food and beverage items falling by 0.9%, at the same time that non-food/beverage items rose by only 0.1% on average.
The report notes that the price drop for food and beverage items from September to October comes in light of prices remaining steady during the previous month comparison period (August to September).
The drop was calculated from price reductions measured in select categories as follows: rice (-0.6%); pork ribs (-1.2%); raw and grilled chicken (-2.5%) and chicken eggs (-0.3%).
Such price reductions were attributed to the fact that supply had outstripped demand for these items leading up to and during the vegetarian festival.
Meanwhile, the price of tangerines dropped by 11.6%, while food condiments such as fish sauce fell by 1.9%.
At the same time, the items that jumped in price included flour and tofu (0.3%); various types of seafood including silver pomfret fish, squid, cockles, sea crabs and salted mackerel and tuna, which rose by 2% on average, and likewise fresh vegetables and fruits, including kale, cucumbers, morning glory, coriander, onion, cabbage, chili, peanuts, pineapples, rambutan, mango and watermelon, jumping by an average 12.9%.
Such inflation was attributed not only to demand outstripping supply as a result of the Veg Fest, but also to the fact that nationwide crop supplies had been adversely affected by heavy rainfall this year.
Non-food/beverage items rose on average by 0.1% (compared to the previous m-o-m comparison period, when the category experienced a rise of 0.5%) with rises as follows: barber and salon services (0.4%); housing related costs such as utilities, construction materials, cement, bricks and painter fees (0.2%); transport, vehicles and communications (0.1%); and petrol (0.3%).
Oct 2012 vs 2011 – M-o-M
The 5.1% jump was calculated from the following: a 6.2% jump in food and beverage consumer items, which included out-of-home foods (9.6%); fruits and vegetables (8.8%); in-home foods (6.5%); meat, poultry and seafood (5%); non-alcoholic beverages (2.9%); flour and flour products (2.6%); eggs and dairy products (0.7%); while food confinements dropped over the same period by 1.2%.
Non-food/beverage items rose on average by 3.8%, which came from price rises in apparel and shoes (9%) tobacco and alcohol products (7.9%); vehicles, public transport and petrol (5.2%); housing (2.3%); personal health care and pharmaceuticals (1.3%).
Jan to Oct – Y-o-Y
Phuket’s inflation rate peaked at 5.9% when comparing the first 10 months of this year with the same period last year. This was calculated from an 8.5% rise in food and beverage consumer items, which included fruits and vegetables (16.5%); in-home foods (10.4%); meat, poultry and seafood (9.5%); condiments (7.5%); out-of-home foods (7%); rice, flour and flour products (5.3%); eggs and dairy products (02.6%) and non-alcoholic beverages (2.5%).
Non-food/beverage items rose on average by 3.1%, which came from price rises in apparel and shoes (5.8%); vehicles, public transport and petrol (4.6%); housing (2.4%); personal health care and pharmaceuticals (1.8%) and tobacco and alcohol products (1.1%).
Meanwhile, products and services classified as entertainment, reading, education and religion, dropped by 0.7%.
— Steven Layne
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Business
Turbulence ahead for Thailand’s aviation industry | VIDEO

When the airlines, in particular, were asking the government to put their hands in their pockets for some relief funding in August last year, it was genuinely thought that international tourists would be coming back for the high season in December and January. At the very least local tourists and expats would head back to the skies over the traditional holiday break. And surely the Chinese would be back for Chinese New Year?
As we know now, none of that happened. A resurge in cases started just south of Bangkok on December 20 last year, just before Christmas, kicking off another round of restrictions, pretty much killing off any possibility of a high season ‘bump’ for the tourist industry. Airlines slashed flights from their schedule, and hotels, which had dusted off their reception desks for the surge of tourists, shut their doors again.
Domestically, the hotel business saw 6 million room nights in the government’s latest stimulus campaign fully redeemed. But the air ticket quota of 2 million seats still has over 1.3 million seats unused. Local tourists mostly skipped flights and opted for destinations within driving distance of their homes.
As for international tourism… well that still seems months or years away, even now.
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Business
Domestic air passenger numbers double those of January

Passenger numbers on domestic flights within Thailand have doubled within a month, rising from 4,000 in January to over 10,000 this month. Having nearly recovered to pre-pandemic levels, domestic travel plummeted once more when Covid-19 resurfaced late last year.
Apirat Chaiwongnoi from the Department of Airports says 15 of Thailand’s 29 airports are now operating domestic flights, with more expected to follow. He believes the aviation sector will continue to recover further in the coming 6 months, bolstered by the national vaccine rollout.
Around 120 domestic flights a day are now operating, which is twice the number that were operating at the lowest point in the crisis. Prior to the resurgence of the virus in December, domestic passenger numbers had recovered to 30,000 – 40,000 a day, around 80% of pre-pandemic numbers.
The DoA says airports must continue to adhere to the Covid-19 hygiene measures put in place by the Health Ministry and the Civil Aviation Authority of Thailand.
SOURCE: Bangkok Post
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Coronavirus (Covid-19)
Samut Sakhon’s shrimp market to remain closed until February 15

Samut Sakhon’s Central Shrimp Market, the epicentre of Thailand’s recent wave of Covid-19, will remain closed until February 15. The market can reopen once the overall hygiene situation at the market and surrounding area has improved, according to the province’s disease control committee.
Local officials say the shrimp market needs to remain closed until the market structure and nearby residential facilities are inspected. People who violate the order face up to a year in prison and a fine up to 100,000 baht.
More than 12,000 people in the province have tested positive for Covid-19. The increasing number of infections is a result from the active case finding to contain the spread of the virus.
SOURCE: Thai PBS World | Thairath Online
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