Inflation bites as Thailand election looms

Inflation bites as Thailand election looms

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Scores of unemployed Thais shelter alongside the homeless near the Grand Palace in Bangkok, waiting for free meals as 14 years of high inflation pushes up the cost of living – a headache for the government ahead of the upcoming general election.

The leadership came to power under Prayut Chan-O-Cha eight years ago and vowed to bring stability after long-running protests began to hit the kingdom’s economy.

However, it has struggled to deliver on its promises and the damage the pandemic has wreaked on the travel industry has been compounded by a global inflationary crisis that has caused prices to rise beyond reach for many.

And in a move seen as symbolic of the seriousness of the situation but likely to cause even more pain for consumers, the government recently raised the price of instant noodles for the first time in more than a decade, after manufacturers called for a hike had advertised.

For those waiting in the rain, the impact is already painfully clear.

“A few years ago I could afford to buy my own food, but now food is too expensive,” says Somchai, who gives only one name and is unemployed.

“I couldn’t take the prices so I need to come out and find a food donation like that,” the 42-year-old said after picking up his food.

Parliamentary elections are due by March, giving the coalition government led by the pro-military Palang Pracharat Party (PPRP) little time to change course.

– Promises not kept –

Prayut was suspended from office last month while the Constitutional Court decides whether he has reached his term as prime minister.

To ease the pain for struggling Thais, the government has approved a proposal to raise the daily minimum wage to 328-354 baht ($8.83-$9.53) after earlier agreeing to an extension of the fuel tax exemption.

But Naresuan University political scientist Napisa Waitoolkiat told AFP the measures were taken “to win votes” but doubted they would turn many voters around.

“The damage is beyond repair,” she said.

The economy appears to be a major factor in the election, and Napisa said voters would not forget the PPRP’s vow to improve it.

“But once they are in power, they cannot keep the promise,” she said.

And while the minimum wage hike goes a long way, Thammasat University is internationalProfessor Pavida Pananond suggested that more was needed.

“What we need to look at now are more targeted policies that would help alleviate the difficulties of rising living costs in low-income Thai households,” she said.

Growth remains sluggish — just 2.5 percent in the second quarter, weighed down by high inflation despite the return of foreign visitors following the pandemic shutdowns.

“You will see that even Thailand’s GDP growth rate is the slowest in the region,” Pavida said.

– ‘You can’t survive’ –

Pavida also warned that price hikes like that of instant noodles could be a harbinger of more food price hikes.

“Low-income people, whose income is largely spent on food or energy, would be hit even harder,” she said.

Veerayuth Sae-ung, queuing in central Bangkok to buy a noodle lunch, said his “way of eating has changed a lot”.

“I used to come here and buy lunch like this every day, but lately I just couldn’t afford to shop at the stalls every day,” said the 34-year-old.

Greg Lange, co-founder of the Bangkok Community Help Foundation, which distributes 500 meals a day, warned they were helping more and more people.

“Despite the rain, the line sometimes goes two or three blocks,” he said.

“I think it was already very difficult for older people to make ends meet,” added its co-founder Friso Poldervaart.

Poldervaart said many of the elderly people they helped have lost touch with their families and are unable to survive on the government’s 600-1,000 baht a month subsidy.

“You can’t make a living from that. That’s the way it is,” he said.

“It was difficult like that, but of course with rising prices it becomes more and more difficult for everyone to make ends meet.”

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