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PRESS RELEASE
Increase in Food Prices Has Eased in the First Half of 2012
Food prices show signs of easing in the first half of 2012, the Retail Price Watch Group
(RPWG) observes.
Singapore’s Consumer Price Index (CPI) for food has come down to 2.3 per cent in June
from 3.8 per cent in January this year, compared to a year ago. The slower pace of food
inflation has an impact on household expenditure as food expenses take up a considerable
portion of each household’s monthly budget.
The RPWG has also observed that the prices for some common food items have declined or
remained fairly stable.
Taking a snapshot of the average retail prices of selected food items in Singapore, the RPWG
observed that prices of a number of food items have declined (9 food items), remained the
same (4 food items) or increased by a moderate amount (4 items by less than 1 percent) in the
second quarter of 2012 compared to the first quarter (Table 1).
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Table 1: Average Retail Prices of Selected Items ($)
S/N Food Item 2012 Q1 2012 Q2 %
change
1 Hen eggs (10 eggs) 1.93 1.84 -4.66
2 Watermelon (per kg) 1.34 1.28 -4.48
3 Potatoes (per kg) 1.75 1.68 -4.00
4 Orange (each) 0.34 0.33 -2.94
5 Chilled Chicken Wing (each) 0.67 0.66 -1.49
6 Spinach (Bayam) (per kg) 2.71 2.68 -1.11
7 Duck (per kg) 6.79 6.72 -1.03
8 Thai Rice (100% Fragrant) (5kg) 12.73 12.68 -0.39
9 Cooking Oil (2kg bottle) 6.08 6.07 -0.16
10 Ordinary White Bread (400g) 1.46 1.46 0.00
11 High Fibre Bread (400g) 2.20 2.20 0.00
12 Chilled Mutton (per kg) 17.79 17.79 0.00
13 Hen (per kg) 5.89 5.89 0.00
14 Instant Coffee (200g bottle) 10.00 10.03 0.30
15 Instant Noodles (5 pkts) 2.24 2.25 0.45
16 Carrots (per kg) 1.94 1.95 0.52
17 Sugar (2kg) 3.34 3.36 0.60
Source: Average retail prices of selected items are available in the Monthly Digest of Statistics (MDS) published by Department of Statistics (DOS), Singapore
(http://www.singstat.gov.sg/pubn/reference.html). DOS collects price data for more than
1,000 types of “off-the-shelf” food items from major retailers, including wet markets,
supermarkets and provision shops.
The RPWG advises consumers to take advantage of lower prices or promotions whenever
possible.
For some, another way to achieve more value for money is to consider purchasing
housebrand items. Housebrand items are comparable to more prominent brands in quality,
and their prices are often lower. A check with the RPWG’s three supermarket members
(NTUC FairPrice, Giant and Sheng Siong) reveals that their housebrand items provide a more
economical alternative for consumers in Singapore. The RPWG notes that the prices of
various housebrand items from these supermarkets are also lower than the national average
retail prices of retail items in the same category. (Table 2)
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Table 2: Examples of Cheaper Housebrand Items from Major Retailers in June 2012
S/N Item Supermarket
Housebrands’
Average Retail
Price1
National
Average Retail
Price2
1 Cheese3 (packet of 12 slices) $3.05 $5.03
2 Condense Milk (397g tin) $1.25 to $1.45 $1.65
3 Cooking Oil (2 kg bottle) $5.00 to $5.49 $6.04
4 Hen Eggs (per 10) $1.39 to $1.80 $1.83
5 High Fibre Bread (400+100g) $1.80 to $1.95
$2.20
for 400g
6 Ice Cream4 (2 litre tub) $5.45
$6.21
for 1.5 litre tub
7 Instant Coffee3 (200g)
$4.62 $9.86
8 Instant Noodles (5 packets) $1.60 to $1.64 $2.25
9 Ordinary White Bread (600g) $1.15 to $1.20 $1.46
for 400g
10 Sugar (2 kg packet) $2.55 to $2.95 $3.36
11 Thai Fragrant Rice (5 kg packet) $11.18 to $12.30 $12.64
12 Vitamin Enriched Bread3 (600 g) $1.20
$1.64
for 400g 1Source: NTUC Fairprice, Diary Farm Singapore, Sheng Siong
2Source: Monthly Digest of Statistics (MDS), Department of Statistics (DOS), Singapore
3 Price of housebrand item was provided by only one supermarket chain.
4 Prices were similar across two different supermarkets’ housebrands.
Note: Consumers are advised to consider the prices with regards to the product quantity and
grade, as these may differ between housebrand items.
The RPWG, led by Mr. Lee Yi Shyan, Senior Minister of State for Ministry of Trade and
Industry and National Development, was set up in late February 2011 to keep a close watch
on any excessive price increases of daily necessities and anti-competitive behaviour from
businesses in Singapore. The RPWG will also continue working with retailers to assure
consumers that there are many choices in the market, and economical quality alternatives
remain easily available.
MINISTRY OF TRADE AND INDUSTRY
7 August 2012
For more information on Domestic Food Inflation, please refer Annex.
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For media queries, please contact:
Shelley Chua
Senior Assistant Director
Corporate Communications Division
Ministry of Trade and Industry
Tel : 6332 7511 / 9022 2249
E-mail : [email protected]
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Annex
Domestic Food Inflation in 2011
The increase in domestic food prices last year mirrored the sharp rise in global food
commodity prices. As Singapore imports over 90% of our food, we are largely subject to
global supply disruptions caused by weather-related crop failures.
However, compared to global prices1, Singapore’s import prices and domestic prices for a
wide variety of food items rose by a smaller extent. (Chart 2) This could be attributed to
several factors, including: (a) the general appreciating trend of the Singapore dollar; (b) the
long-term contractual agreements that food importers have with their suppliers; and (c) the
diversification of food import sources.
Chart 2:
Change in Global and Import Prices of Selected Food Categories, 2011
Combating Rising Cost of Living in 2012
The Government is helping to cushion the impact of rising cost of living for lower and middle
income groups. Cash grants are offered directly to help households deal with inflation. These
include the “GST Vouchers 2012”, “Grow and Share” package and U-Save rebates. Although
these grants do not reduce inflation, they are targeted help to cushion the higher cost of living
that these households experienced.
Consumers in Singapore have a wide range of good quality brands to choose from, including
more economical alternatives. Retailers regularly offer discounts on special items.
Consumers can also take advantage of these discounts and achieve greater cost-savings on
their household expenditure.
1 According to UN FAO Food Price Index, global food commodity prices have increased by 18.1% in 2010 and
another 22.8% in 2011 on average.
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Important Note on the Retail Price Watch Group
The RPWG encourages businesses to help allay the public’s concerns on excessive price
increases in daily necessities. Businesses may, for instance, do this through promotions that
benefit consumers facing price increases, or a commitment to keep prices stable for a period
of time.
The RPWG advocates free market competition as the most effective way to achieve the
lowest price of any goods. It welcomes efforts by businesses to help consumers combat
inflation but does not impose on business to perform specific price reduction programmes.