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30 Mar 2022

Thai Economy

High cost of living prompts Bangkok residents to cut spending during Songkran Festival in 2022 (Current Issue No.3317)


        KResearch is of the view that spending by Bangkok residents during the upcoming Songkran Festival 2022 will reach THB23.4 billion, a decline of 2.5 percent YoY, as they intend to spend less on all activities due to the rising cost of living, driven by inflation. Most of the Bangkok city dwellers will be more careful about their spending, which is in line with the poll conducted by KResearch in 2022, showing that the respondents of all income brackets intend to cut their expenses, compared to those in the previous three months.  
        Their spending on social gatherings, plus food and beverages accounts for the largest share at 40 percent of the THB9.5 billion in total spending, a decline of 3.0 percent YoY. The majority of respondents plan to cook at home and purchase only the required ingredients a lower costs.
        They also intend to spend THB4.2 billion, a decline of 3.9 percent YoY on shopping. The poll shows that the majority of Bangkokians plan to purchase consumer goods and clothes, but at smaller number than those seen in the previous year. They will also avoid and/or cut purchases of luxury goods while also buying discounted products. In addition, the respondents will delay purchases of expensive products, including household electrical appliances and electronic products.
        Meanwhile, retailers will face higher production costs, prompting them to gradually hike prices of some products. Aside from sales promotions, aimed at stimulating spending from consumers with purchasing power and bolstering liquidity during the festival, retailers are advised to focus on cost management.

Thai Economy