Lower domestic fuel prices are expected to lift consumer confidence, but are unlikely to immediately reduce prepared food prices, according to the Thai Restaurant Association.The drop in fuel prices is a positive sign and is likely to boost consumer purchasing power, said Thaniwan Kulmongkol, president of the Thai Restaurant Association. After the Middle East war began, many eateries raised their menu prices, citing higher costs.
Diesel, a key component in business logistics, has dropped from more than 50 baht per litre in early April to less than 35 baht.
"Food prices tend to rise quickly, but reductions take more time," she noted.
Many restaurateurs are still using inventory purchased at higher prices, including raw materials and packaging, said Mrs Thaniwan.
Operators also continue to face high costs for rent, electricity and labour, which have not fallen in line with energy prices. Some ingredient prices such as vegetable oil also remain high.
