Puey Ungphakorn Institute Reports Higher Inflation Burden on Low-Income Households

A recent study by the Puey Ungphakorn Institute for Economic Research has highlighted a significant disparity in how inflation affects different economic groups in Thailand. According to the findings, low-income households are currently bearing an inflation burden that is 2.6% higher than that experienced by high-income earners during the ongoing cost-of-living crisis. The institute identified four primary factors contributing to this inequality. First, the expenditure structure of lower-income families is heavily weighted toward food, which has seen rapid price increases. Second, cheaper goods are experiencing faster price hikes compared to premium items. Third, manufacturers are increasingly engaging in 'shrinkflation,' where product sizes are reduced while prices remain the same. Finally, low-income consumers face practical limitations that prevent them from purchasing goods in bulk, which would otherwise offer better value. For residents and long-term visitors, this data underscores the rising cost of essential goods, particularly food items, which may impact daily budgeting. While the institute has proposed policy recommendations to the government to address these structural issues, it remains to be confirmed how or if the state will implement specific measures to mitigate these inflationary pressures on vulnerable populations.