the KR-ECI edged up in July 2018 for the first time in half a year due to better outlook in income and employment as well as easing concerns about domestic product-and-service prices. The 3-month Expected KR-ECI declined due to household worries about the weather and water situations that may impact their income and expenditures in the future.
On a cautionary note, KResearch views, despite an improved KR-ECI, the factors supporting the cost of living are specific and uncertain. Moreover, household expenses (excluding debt) are fluctuating and not correlated with increased income. KResearch will closely monitor the economic and living conditions of Thai households.
Looking ahead over the next 1-2 months, close attention should be paid to the weather situation in Thailand, which can affect the amount of water in the country, threatening to ripple across the domestic economy through prices of consumer goods and services.