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Source: www.gov.sg |
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COMMITTEE AGAINST GST
PROFITEERING (CAP) FINDS PRICE CHANGES TO BE GENERALLY MODERATE |
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The Committee Against GST Profiteering (CAP)
has found price changes to be generally moderate since the announcement
of the GST increase in November 2006. |
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According to data from the Department of
Statistics (DOS), the Consumer Price Index (CPI)1 increased
by 0.5% between November 2006 and May 2007. |
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CAP has analysed the Food category of the
CPI in greater detail as this is an important area of concern to many
Singaporeans. |
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Data from DOS shows that Food prices, which
make up 23% of total CPI expenditure weight, decreased by 0.3% over the
first five months of this year. The Food category is further subdivided
into non-cooked (10% of CPI) and cooked (13% of CPI) food subgroups. |
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Non-cooked food prices on the whole have
shown a decrease of 1% between January and May this year. Within this
subgroup, the items that saw the greatest price increases were cooking
oils (3.2%), non-alcoholic beverages (2.8%), and dairy products (3.2%). |
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CAP, during its walkabouts, had similarly
received feedback from businesses about the cost increases of such
items, for example coffee and diary products. |
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For dairy products, the increase has mainly
been in the price of milk products. Prices of milk products have been
rising as a result of a shortage of supplies, e.g. a drought in
Australia affected its milk exports, and rapid increase in demand in
Asia. Thus, the price increase in milk products impacted not just
Singapore but also other countries. |
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In general, CAP encourages consumers to shop
wisely and to exercise their choice when making purchases, such as
opting for lower cost housebrands, as supermarkets have been absorbing
the cost increases as much as they can. |
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Not all non-cooked food items,
however, have seen price increases. Items such as vegetables and
vegetable products (-8.7%), and sugar (-11.9%) have seen price
falls. Similarly, seafood prices fell by 2.7% between January and
May 2007. Seafood prices generally peaked in the Lunar New Year
period and fell subsequently. |
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As for the cooked food subgroup, which
includes restaurant, fastfood, hawker and catered food, prices have
increased marginally (0.3%) between January and May 07. |
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CAP is heartened by the
recent calls by two major restaurant associations2
to their members to maintain prices after the GST
increase. We look forward to more associations coming
forward to do likewise. |
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Hawker food prices,
another item under the cooked food subgroup, have also
remained relatively stable. Since 11 Jun 2007, DOS has
commenced a more detailed survey of hawker food and
beverage prices, covering close to 1,300 stalls from
39 hawker centres and coffee shops across Singapore.
The survey monitors the prices of some 75 popular
Chinese, Malay, Indian and Western dishes, as well as
beverages. |
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In the period between 11
and 22 Jun 07, the survey found that only 0.6% of
surveyed stalls have raised prices. CAP is encouraged
by the survey findings, and believes competition will
continue to keep prices stable. DOS will continue to
monitor hawker prices over the next few months. |
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CAP continues to urge
merchants not to profiteer on the pretext of GST
increase. The committee will evaluate and investigate
every complaint on profiteering it receives. Members
of public can provide feedback to CAP via its website
(www.cap.org.sg )
or email (feedback@cap.org.sg). |
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COMMITTEE
AGAINST GST PROFITEERING (CAP)
4 JULY 2007 |
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1 The CPI
measures the change in the prices of a fixed basket of
goods and services commonly purchased by the majority
of households.
2 The
Restaurant Association of Singapore, and the Indian
Restaurants Association of Singapore. |
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Source: www.gov.sg
Media Release 4 Jul 2007 |
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FrontPage Edition: Wed 4 July 2007
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