SINGAPOREANS should brace themselves for a sharp spike in food prices starting from New Years' Day.

Expect to pay much more for anything from curry puffs to ice cream.

This is because wholesalers are set to raise prices for supplies to hotels and hawkers centres by as much as 10 per cent, and they in turn, are likely to pass the increases to customers.

The rises are a direct result of intense global demand - particularly from the developing world - for agricultural produce.

Many suppliers are also renewing their contracts with wholesalers and distributors, which end on Dec 31, and will factor in the higher prices.

These long-term contracts have helped control prices to wholesalers and distributors but once they expire, it could be open slather for wholesalers and retailers.

'When January comes, there'll be a huge price increase, as some of our raw materials we've locked in for several months. Once the contract is over, we're on a new price,' said Mr Timothy Chan, general manager of Polar Holdings.

Read the full story in Thursday's edition of The Straits Times.