Inflation in Thailand...

[Lancelot]

Yesterday I felt productive, so I strolled over to my neighborhood mall and bought two dial-up internet prepaid cards. The retail price is Thai Baht 169 per 15 day unlimited usage card,  but the owner would accept THB 150 ($3.66) per card if I purchased two. This time no dice THB 160 ($3.90) each.

On the way home, I was hungry, so I stopped to buy some pork noodles. Normally they are THB 22, but again the owner said "new price", now THB 25 ($0.61)

Both proprietors blamed the higher cost of diesel and gasoline as the primary reason for the price increases.

Currently gasoline is about $2.22 per gallon now; diesel $1.85; up $0.37 and $0.50 respectively.

Some of the other increases I've noticed are:

                                   Previous                     Current
Regular bus                    $0.12                       $0.17
Bus to beach                  $2.20                       $2.68
640ml Leo beer              $0.90                       $0.95

The price increases seem rather mild, but when put into respective, they are substantional. The average Bangkok Thai general laborer earns about $4.27 per day. Outside of Bangkok many farm hands toil long hours in the hot asian sun for a princely $2.93 per day.

Thailand normally has a current account surplus, but the combined effects of imported oil and lower than expected tourist arrivals (Tsunami) has resulted in a 3% current account deficit. 

My first two years I really didn't notice any inflation, but it's creeping up now...

Lance, your roving reporter 

 

[spike]

As long as they don't raise the price of a massage, your much better off than most of us.

My daughter just got her house re-assed, no tax increase but a value increase of $184,000, so I told her to be prepared in December when the tax bills come out. She thinks because the tax assessment didn't go up her tax bill will not rise. Yikes!

 

[dougdo]

This is the danger of ERing in the developing world. Price and currency flucatuations are much more dramatic and sudden although clearly you're insulated from some of it if your income and savings are in hard currency.

I struggle with that. Sure I can live in Costa Rica on $1000US/month now but there's no guarantee that'll still be true in 10 years which makes it hard to plan. Costa Rica has the advantage of a managed currency (which devalues approx 10% per year against the US dollar with the devaluation spread out equally each day of the year so you know exactly what the value of the colon will be in 90 days) vs floating currency which cushions the blow a little.

 

[OldAgePensioner]

Lance, say it aint so!

There goes my cheap beer dream.

 

[Lancelot]

Hi Dougdo,

Sure, there are financial risks when living abroad, but they can also be minimized if one is willing to be flexible.

Personally, I own no real property in Thailand and have no plans to acquire any. So, if the Thai baht suddenly strengthens against the USD, I will simply relocate. There is always a bargain "country" somewhere out there...

How do you like Costa Rica? It seems we have roughly the same living expenses: my latest 12 month rolling monthly average was $1,022.

Have you considered Brazil or Argentina?

All the best,

Lance

This is the danger of ERing in the developing world. Price and currency flucatuations are much more dramatic and sudden although clearly you're insulated from some of it if your income and savings are in hard currency.

I struggle with that. Sure I can live in Costa Rica on $1000US/month now but there's no guarantee that'll still be true in 10 years which makes it hard to plan. Costa Rica has the advantage of a managed currency (which devalues approx 10% per year against the US dollar with the devaluation spread out equally each day of the year so you know exactly what the value of the colon will be in 90 days) vs floating currency which cushions the blow a little.

 

[peteyperson]

Hey Lance,

There are some recent book and interviews available free streaming on the site linked below which illuminates things:

http://www.netcastdaily.com/fsnewshour.htm

Interesting to see things happening much as predicted re: gas price increases and knock-on effects.

Petey

Hi Dougdo,

Sure, there are financial risks when living abroad, but they can also be minimized if one is willing to be flexible.

Personally, I own no real property in Thailand and have no plans to acquire any. So, if the Thai baht suddenly strengthens against the USD, I will simply relocate. There is always a bargain "country" somewhere out there...

How do you like Costa Rica? It seems we have roughly the same living expenses: my latest 12 month rolling monthly average was $1,022.

Have you considered Brazil or Argentina?

All the best,

Lance

 

[Nords]

Both proprietors blamed the higher cost of diesel and gasoline as the primary reason for the price increases.

Phew, what a relief.

I thought it was in anticipation of the impending tsunami of Boomer ex-pat ERs looking for Soi Cowboy...

 

[OldAgePensioner]

Soi Cowboy ? , never been there but it sounds like a place where someone could relax with a nice non-lactose drink and chat with friendly fems. Just guessing of course. I'm shocked (Casablanca!).

Inflation on a $1 lunch from the street vendors seems minor compared to the $19.95 lunch prices here in Chicago. Percentage isn't everything. Nor is shrinkage due to cold temps.

 

[Lancelot]

[quote
I thought it was in anticipation of the impending tsunami of Boomer ex-pat ERs looking for Soi Cowboy...

Nords, I researched your theory last night.

Cowboy remains calm; more than my (hungover) head anyway

 

[Lancelot]

[quote Inflation on a $1 lunch from the street vendors seems minor compared to the $19.95 lunch prices here in Chicago.  Percentage isn't everything. Nor is shrinkage due to cold temps.
I hear you OAP

 

[dougdo]

Personally, I own no real property in Thailand and have no plans to acquire any. So, if the Thai baht suddenly strengthens against the USD, I will simply relocate. There is always a bargain "country" somewhere out there...

How do you like Costa Rica? It seems we have roughly the same living expenses: my latest 12 month rolling monthly average was $1,022.

Have you considered Brazil or Argentina?

I have been thinking about visiting Brazil but I like the idea of owning real property and settling down and getting to know the locals. But you're right, there will always be someplace that's cheap I guess. I only live in Costa Rica part time and am not sure I'm returning this winter....

 

[Billy]

Guys,
For the folks coming over for the first ever ER convention, immigration is slower than normal. They are now doing an iris scan which slows things down a bit...plus..they asked me for my boarding pass from my last flight. Lucky I had it...most times I throw it out.

I am happy to report the Beer Chang in Chiang Mai is still 35 Baht at my local shop. That's a relief!

Billy
www.RetireEarlyLifestyle.com

 

[GTM]

Guys,
For the folks coming over for the first ever ER convention, immigration is slower than normal. They are now doing an iris scan which slows things down a bit...plus..they asked me for my boarding pass from my last flight. Lucky I had it...most times I throw it out.

I am happy to report the Beer Chang in Chiang Mai is still 35 Baht at my local shop. That's a relief!

Billy
www.RetireEarlyLifestyle.com

What is and where is the ER convention?

 

[OldAgePensioner]

Billy, nice website and those photos capture Asian nicely. Everything under the sun going on but a sense of tranquility in the midst of hustle and bustle.

Need to get my behind in gear.

 

[MJ]

I'm planning on going mid to late October for 30 days.

Billy, I hope you will still be around.

I haven't bought the tickets yet so if anyone hears about any special flight deals leaving from NYC to BKK, could you PM me.

Thanks.

 

[Billy]

Ok...let's see if I can answer some of these questions.

Since so many of us are converging on Thailand we figured we should make it offical and have the fisrt ever Early Retirement convention here. Your welcome to join us GTM. Lance, Ben, MJ, us, and scores of others have already signed up...

OldAgeP,
Thanks for the compliments on our site, but watch out for that "gear behind you". It can come back to bite you!

MJ, I "think" EVA Air flys out of NY now. They have a Deluxe Class that is worth every dime for these long flights, but please keep it a secret...

Billy
www.RetireEarlyLifestyle.com

 

[tozz]

Are you soured on Costa Rica? Or just itchy? (if this is too probing, feel free to ignore!)

tozz

I only live in Costa Rica part time and am not sure I'm returning this winter....

 

[pbrane]

I'm thinking hard about visiting either Thailand, Argentina or Brazil or Panama this fall/winter... looking for a place to live part time.. or more. Has anyone been to both Thailand and Argentina? Any comments on potential for frugal retirement living? I was in S. America in 1980, but things have changed quite a bit, like exchange rates. Argentina seems as cheap as Thailand in some respects, but with a lot less beaches.

-m

 

[MJ]

Argentina seems as cheap as Thailand in some respects, but with a lot less beaches.
-m

We don't need no stinkin beeches.

Argentina has a pretty long coast line. I would think a decent portion of it would have nice beaches.

I actually prefer fresh water. I wonder if Argentina has a lot of lakes?

 

[pbrane]

I think Argentina must have lakes, since they have an area known as the "lake district." It's a large area in the south-central west, bordering on Chile. Supposed to be beautiful, but wouldn't want to be there in (their) winter.

-m

 

[Nords]

Ok...let's see if I can answer some of these questions.

What in the world would an iris scan accomplish? I sure hope we're talking about the eye pigment...

I can only imagine the riots that'd ensue in Honolulu if we tried that trick at the airports.

 

[tozz]

It's the latest craze in biometrics. They performed a trial here at Logan (Boston) sometime back--dunno if it is going to be implemented. Just another form of fingerprinting.

What in the world would an iris scan accomplish?  I sure hope we're talking about the eye pigment...I can only imagine the riots that'd ensue in Honolulu if we tried that trick at the airports.

 

[dougdo]

Are you soured on Costa Rica?  Or just itchy?  (if this is too probing, feel free to ignore!)

tozz

Nah, in general I love Costa Rica and do want to go back but I'm not sure it's the all out perfect place for me either and so I'm contemplating more travel this winter. I think my biggest problem with C.R. is that one has to pick between the coastal areas which are beautiful and nature-filled and beachfront (but also hot and muggy and sometimes buggy and little cultural scene) or the city which has a great year-round climate and lots to do (but also crime and noise and general craziness). I guess that's one downside of retiring really early--I still need some action!

 

[GTM]

Nah, in general I love Costa Rica and do want to go back but I'm not sure it's the all out perfect place for me either and so I'm contemplating more travel this winter. I think my biggest problem with C.R. is that one has to pick between the coastal areas which are beautiful and nature-filled and beachfront (but also hot and muggy and sometimes buggy and little cultural scene) or the city which has a great year-round climate and lots to do (but also crime and noise and general craziness).   I guess that's one downside of retiring really early--I still need some action!

How about Panama?, alot of activity in Panama City and San Jose weather in the highland areas.

 

[peteyperson]

CT,

How do you feel about the security situation in Argentina? I heard that Buenos Aires now has security on the apartment buildings and so on. Outside it seems there are now gated communities going up. Not sure what that says about personal safety for those who are retired and clearly have a bit of money..

Also was surprised when looking at the Rough Guide how much more expensive Argentina seemed in comparison to say Thailand. Costs seemed more in line with Mexico or Brazil, markedly higher but still cheaper than cheap parts of Europe like the Greek Islands.

Regards,
Petey

I have made a few trips to Argentina, the most recent was in 1998. It was expensive as Hell!  - Probably one of the most expensive countries I have ever been in!  - There were a few items that were inexpensive in some areas such as Beef and Local wine, but everthing that was imported was outrageous!

When I was there in 1985, things were cheaper because Argentina had a 2000 percent Inflation rate on their currency and the U.S. Currency held it's value.

I love Argentina and the area bordering Chile is a lot like Montana with a lot of good trout fishing. Their winters are fairly wimpy compared with Minnesota Winters. Even the very tip of Argentina (Tierra Del Fuego) has winters that are tempered by the Oceans.


Ted Turner is currently buying up a lot of the property, like he has done with Montana.