Cost of living in Thailand - statistics & facts
How does inflation affect households in Thailand?
Thailand's household expenditure patterns reveal a complex economic landscape. Despite a decade of increasing household income, average monthly expenditures have been growing at a faster pace, leading to higher household debt. This growing financial burden affects many families, particularly as the costs of essentials continue to rise.In 2023, around two-fifth of Thai households spent on average between 15,001 and 30,000 baht per month. This aligns closely with the national average monthly household expenditure, highlighting a concentration of spending in the middle-income bracket. However, the expenditure distribution varies widely, from less than 3,001 baht to over 100,000 baht monthly, underscoring the economic challenges many families face in balancing their budgets. In November 2024, non-food products and alcoholic beverages account for over 58 percent of total household expenditure. The growing share of non-food expenditure aligns with recent inflationary pressures in Thailand. A 2023 survey on the impact of inflation on Thai household expenditures found that nearly 70 percent of respondents identified necessities, including food, clothing, and healthcare, as the areas most affected by inflation. This widespread concern overshadows other financial pressures, including the inability to save money.
Living in Thailand’s major cities
Although the national index decreased, Bangkok maintained a higher cost of living score than the country average. The concentration of economic activity in Bangkok is evident in household income and spending patterns. In 2023, the average monthly household income and expenditures in Bangkok and its surrounding area were significantly higher than the national average. This disparity highlights the economic divide between urban centers and the rest of the country, with the capital commanding higher prices for goods and services. However, other major cities present a mixed picture in specific expense categories. For example, Phuket leads in restaurant prices, while Chiang Mai enjoys the highest local purchasing power. These differences reflect the unique economic characteristics of each city, influenced by factors such as tourism and urban development.Though Thailand remains affordable for expatriates and tourists, rising living costs and inflation are straining local households and limiting savings. The economic divide between urban and rural areas underscores the need for policies to address these challenges.