Food retail prices set to rise as supplies get more costly
Sun, Dec 02, 2007
The Straits Times
THE cost of meals at hawker centres and restaurants look certain to rise after food supply costs, particularly for imports, rocketed for the second month in a row.
Many eateries have yet to pass on the higher charges to customers but economists believe they will not be able to hold out for much longer given the severity of the cost increases.
Official figures released last week show that Singapore's domestic supply price index (DSPI) rose 4.9 per cent in Oct from a year ago but the food component of the index increased 10.3 per cent. This followed a 10 per cent jump in Sept.
While its more famous cousin, the consumer price index (CPI), tracks price rises faced by end-consumers, the lesser-known DSPI tracks the prices of goods made locally or imported that are retained for use in the domestic economy by the government, business or households.
This means that while the increase in the price of a bowl of noodles is reflected in the CPI, increases in the prices of the ingredients that go into making it - such as flour, meat and condiments - are reflected in the DSPI.
The DSPI showed that prices of live animals were 24.5 per cent higher in Oct than a year ago, while those of dairy produce and eggs soared 41.6 per cent.
Vegetables and fruit prices rose 5 per cent.
Fish, however, cost 0.5 per cent less than a year ago.
DBS Bank economist Irvin Seah warned that the new data signals that faster rises in consumer prices for food are probably around the corner.
Read the full report in Monday's edition of The Straits Times.