Inflation remains a constant worry for Thai citizens as they display a pessimistic outlook on economic conditions, anticipating a surge in inflation and interest rates, according to the latest study by market research company Ipsos.
Usana Chantarklum, the company's managing director, said the survey of 6,000 people revealed that 56% of Thais believe the rate of inflation will rise over the next year, while 54% expect a surge in interest rates.
The majority of Thais (57%) rate the current economic situation in the country as "bad" while 72% believe that the country is currently in a recession, 23% higher than the global average (49%).
Thais also expect price hikes in utilities, fuel and food, reflecting the economic uncertainty. The top predicted price increases for Thais in the next six months include utilities, motoring fuel, and food shopping costs, while other household shopping, socialising costs, subscriptions, and mortgage and rent payments may not be affected as much, said Ms Usana.
The study also revealed that Thai citizens blame rising living costs on the global economy (81%), national policies (79%), and interest rates (78%), as well as other factors such as the Covid-19 pandemic, businesses making excessive profits and workers demanding pay increases.
"When individuals perceive a decrease in their disposable income, they tend to become cautious about excessive spending and limit their shopping to essential items, especially from brands they are already familiar with. The opportunity for them to try new brands would be less. Considering the financial instability of consumers, marketers and manufacturers should adjust their product pricing to align with the purchasing power of customers and prioritise retaining loyal patrons," Ms Usana said. Additionally, she emphasised the importance of the government's role in maintaining product prices to support consumers.
According to Ms Usana, the study also found that 25% of Thais are finding it difficult to manage financially these days, with as many as 64% believing that it will take one year or longer to return to normal.
Despite such challenges, the study found there was a growing sense of optimism among Thais. Compared to the beginning of the year, Thais are leaning towards an optimistic future. Some 61% of Thais expect the economy in their local area to be "stronger", compared to 42% in February and 56% in May 2023.
Besides economic aspects, Ipsos's study found ESG (environmental, social, governance) factors have become integral to companies' strategic plans and roadmaps, as an increasing number of consumers show a willingness to spend more on brands that demonstrate responsible behaviour.
Ipsos conducted a study titled "What Worries the World – What Worries Thailand", comparing the top five global concerns with those specific to Thailand, along with predicted price increases from January to June of this year.
The study found that inflation has consistently ranked as the top global concern in Ipsos's "What Worries the World" survey for the past 15 months. Other prominent worries include poverty and social inequality, crime and violence, unemployment, and financial and political corruption.
In Thailand, the study discovered that the leading concern is financial and political corruption, followed by poverty and social inequality and inflation.