Thai Union Warns of Price Increases for 2022 Due to Strong Inflation

Fear of inflation. A new deadly time bomb intensifies the COVID-19 crisis, the Thai labor union warns consumers to brace for price increases next year. The I.C.C. in Saha Group said that people are afraid of deflation. People are willing to tighten their belts and reduce consumption.

External risk factors or threats are things that companies cannot control. But assessing or predicting the future will help you know what to prepare for. Recently, businesses have been concerned about inflation in the United States, the worst in 40 years, which will plunge the economy into stagflation as it has in the past.

While inflation will be a brake variable for economic recovery, some sectors of the economy fear “deflation” because consumers will not spend and will tighten their belts than before.

Thai Union Group PCL has warned that it is deeply concerned about inflation as it will definitely increase the prices of goods and affect not only the purchasing power of consumers but also the broader economic sector.

However, when the price of products moves, it affects the adjustment of “labor costs” which, along with “production costs,” will inevitably skyrocket in 2022. Thanks to rising oil prices, the prices of raw materials such as steel and aluminum have increased accordingly. Those who produce canned tuna are facing rising packaging costs. Canned fish, for example, makes a profit of 3-4%. If inflation is the same, the profit margins will not remain.

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