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9 Jun 2022

Thai Economy

KR-ECI fell for the third consecutive month in May as product prices continued to increase while several government relief measures gradually expired


  • In May 2022, a number of the government relief measures, aimed at alleviating the rising cost of living gradually expired. These included the fourth phase of the co-payment scheme and a cap on the diesel fuel price at THB30/liter. As a result, oil companies were allowed to gradually raise their diesel prices, which now stands at about THB34/liter. Meanwhile, the government introduced ten relief measures to help low-income earners cope with the high cost of living as product prices kept rising amid increased demand after many countries began opening their borders and economic activity started to return to normalcy. On the back of tight supplies seen in a number of commodities caused by the protracted Russia-Ukraine conflict and the above-mentioned factors, the KR-ECI and 3-month Expected KR-ECI fell for the third consecutive month in May 2022 to 31.2 and 34.0, from the 32.5 and 35.5 reported for April 2022.  
  • KResearch also conducted an additional survey on households’ views towards the government measures, aimed at easing the impact of elevated product prices (namely the fourth phase of the co-payment scheme and the new ten relief measures to ease the rising cost of living). According to the findings, 26.0 percent of the households surveyed were of the view that such measures could help address related problems and reduce their expenditures somewhat. However, 35.1 percent of the respondents viewed that such measures only help specific groups while 24.5 percent viewed that they could not access several relief measures due to the conditions of such measures. Additionally, 32.2 percent of the respondents would like the government to introduce new measures that can address various issues in a sustainable manner such as reskilling and upskilling so that they can increase their income.  
  • Looking ahead, economic activity and household income are set to improve somewhat as the COVID-19 will become endemic. Nevertheless, the economic outlook and living conditions of households will likely remain fragile amid risks stemming from persistently high product prices. 

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Thai Economy