Finance / Prices, Inflation and Insurance
Though Thailand is not as cheap any more as it used to be, the country is still very good value for the visitor as well as the foreign resident. If compared to other Southeast Asian or Asian countries, food is cheaper than in Singapore or the Philippines but not as cheap as in Malaysia or Indonesia. Rents, for hotels as well as apartments and houses, are higher than in the Philippines or Indonesia but of course not as high as in Singapore.
English language books are considerably more expensive than in the Philippines, Singapore, Hong Kong or India. They are slightly cheaper than in Indonesia. English language magazines and newspapers have a tendency to be cheaper in all Asian countries except Japan, Hong Kong and Taiwan. Photographic film is cheaper in Hong Kong, Singapore and Malaysia. Gasoline is considerably more expensive than in Indonesia but only slightly dearer than in Malaysia and cheaper than in other Asian countries. Local bus fares are about the cheapest among all non-communist countries of Asia.
Barber shops have the third highest rates in Asia, after Japan and Hong Kong. Cosmetics, likewise, are dearer only in Japan. For sports equipment, too, Thailand is fairly expensive; only Japan and Indonesia have higher prices. (Information based on the Market 0Trends column of Asiaweek)
Locally, since the rapid decline of inflation from the high levels in 1980 and 1981, the Thai economy experienced very stable prices from 1982 to 1988, with inflation averaging less than 3% over the period.
However, it was almost inevitable that the rapid growth rates exhibited by the Thai economy led to a certain overheating that was reflected in price levels. In 1989, the inflation rate was around 5%, caused by increases in demand and higher levels of exports and investment activity. As long as economic growth continues, a rise in inflation can be expected.
At the product level, the increases in the consumer price index over the past few years were driven mainly by higher food prices, particularly of rice, meat, dairy products and prepared foodstuffs. The producer price index increased by only 4.9% in 1989, much less than the 8.2% in 1988, as prices of industrial and especially agricultural products rose more slowly.
Insurance
Any insurance is entirely at an individual’s discretion in Thailand. There is so far no nationwide health insurance scheme, nor is third party liability insurance required for the owners or drivers of motor vehicles.
Many foreigners residing in Thailand take out private health insurance coverage. Fewer find a personal accident insurance a necessity. Compensations for injury suffered by the action of others, for example in road accidents, is often hard to get when the person who caused the accident is not covered by a third party liability insurance. Even if he is, compensation will be small in comparison to amounts paid in Western countries.
When taking out a car insurance, one usually gets a card detailing the procedure in the event of an accident and listing the telephone number of the company’s assessor, generally available around the clock. At an accident site, one should, if possible, wait until the assessor arrives on the scene and deals with the matter.
| 
