Cost of living in Singapore

[LITTLEREDDOT]

Bread prices in S'pore rise along with costs of raw materials and overheads​

Export of wheat, the primary grain for flour, has been choked by the Russian invasion of Ukraine. ST PHOTO: LIM YAOHUI
Amanda Lee
Correspondent


MAR 21, 2022

SINGAPORE - Bread prices here in supermarkets and some bakeries have gone up since the start of the year amid rising costs of raw materials and overheads.
A check by The Straits Times on Monday (March 21) on Price Kaki, a mobile app by the Consumers Association of Singapore to compare grocery prices among other things, found that a 600g loaf of Gardenia Enriched White Bread now costs $2.60, up from $2.40.
Prices of other mass-produced bread brands have also increased.
A 550g loaf of Sunshine Enriched Soft White Bread has risen by 20 cents to $2.30, while a 500g loaf of Top One Enriched White Bread has gone up from $1.60 to $1.70.
Madam Linny Koh, 49, who buys bread almost every week, said she noticed that the price of the 400g Gardenia Enriched White Bread now costs $2.10, up from $2 previously.
"Hopefully the price won't go up anymore, because bread is a common food in our meals," said Madam Koh, an accountant.
Supermarket chain FairPrice said: "With the rising costs of raw materials, key ingredients, packaging, supply chain and labour, we have seen some national bread brands increase their prices this year by about 5 per cent overall.

"However, we have kept FairPrice house brand bread at the same price since the beginning of the year."
For example, the FairPrice White Bread - Enriched 500g is $1.40.
DFI Retail Group, which operates Cold Storage, Giant and 7-Eleven stores here, said all of its prices are adjusted in line with the market and it remains committed to providing competitive prices.

Bakeries and bread suppliers that ST spoke to said the pandemic and rising raw materials costs have pushed them to review their bread prices upwards.
Export of wheat, the primary grain for flour, has been choked by the Russian invasion of Ukraine. Both countries together account for about 29 per cent of global wheat exports.

Mr Steven Yeo, general manager of Prima, Singapore's only flour mill, said it does not source wheat from Russia and Ukraine, but the conflict "may cause an indirect impact on global pricing and supply as they are among the world's largest exporters of wheat".
Prima sources from the US, Canada and Australia, and it is bracing for price volatility.
"If wheat prices continue to rise, our customers may expect to see some price adjustments accordingly," Mr Yeo said, adding that the company aims to keep price adjustments "at a minimum for our consumers".
Mr Forest Lim, 46, president of the Singapore Bakery and Confectionery Trade Association that represents 120 bakery business owners, said prices of raw materials have been creeping up steadily since the end of last year.
"The ongoing Covid-19 pandemic has brought about supply chain disruptions, and a manpower crunch which adds cost pressure to business owners like us in this trade. Besides, the ongoing electric tariffs have also impacted us significantly and have since become a large chuck of our expenditure," he added.


Echoing his sentiments is Mr Jason Ng, the 59-year-old owner of Baker's Oven, which supplies baked products including bread to food and beverages outlets.
Mr Ng said a 25kg bag of flour has increased by $2 to $3, depending on the brand of the flour, and now costs $28 to $35.
He said his electricity costs have risen since November last year.
To meet rising operating costs, Mr Ng will be increasing his bread prices by 5 per cent to 10 per cent from next month.
"We cannot increase our prices too much, because if we do so then customers will make noise and find another supplier," he said.


Over at The Emerald Bakery at Block 325 Clementi Avenue 5, manager Benjamin Lim said he faces rising operating costs, on top of its profits taking a hit during the pandemic.
For example, the 26-year-old shared that the bakery's electricity bill has spiked since October last year - from $2,000 to $3,000 a month to $6,000 to $7,000 a month.
"All these combined have quite a huge impact on us, so that's why we felt that there's a need for us to increase our bread prices," said Mr Lim, explaining a price hike after Chinese New Year. For instance, the cost of a coconut bun rose by 10 cents to $1.10.
However, Tiong Bahru Bakery, which says it uses "top-notch ingredients, with flour, butter and chocolate sourced from the best producers in France", has not made any price adjustments to its products.
The chain, which has nine outlets, added: "We are trying our best to maintain our prices and juggle the cost on our end so as not to pass on the increase to our customers."

 

[LITTLEREDDOT]

Petrol prices in S'pore return to $3 territory as global price of oil rebounds​

Regular petrol prices here have not been above $3 until this year. ST PHOTO: ARIFFIN JAMAR

Christopher Tan
Senior Transport Correspondent

Mar 23, 2022

SINGAPORE - Petrol prices have rebounded back to the $3 territory, one week after they eased.
According to pump price tracker Fuel Kaki, an initiative by the Consumers Association of Singapore, 92-octane petrol is $3.01 a litre at Caltex and Esso, and $2.94 at SPC.
Shell and Sinopec do not offer that grade, which can be used by the majority of cars here.
For 95-octane, the most popular grade, posted prices are $3.05 at Caltex, Esso and Sinopec and $3.09 at Shell. Again, SPC is the only one with a sub-$3 rate, at $2.98.
For 98-octane, necessary for some direct injection engines and sports cars, prices are markedly higher - $3.52 at Esso and Sinopec, $3.58 at Shell and $3.46 at SPC.
The so-called premium grade 98-octane fuels are $3.71 at Caltex, $3.80 at Shell and $3.65 at Sinopec.
Posted prices for diesel are $2.82 at Caltex and Esso, $2.95 at Shell, $2.81 at Sinopec and $2.68 at SPC.

After discounts, Caltex still has the best offer - $2.44 with OCBC Voyage card, beating even SPC's $2.50 (all participating cards).
For 95-octane, Sinopec's $2.39 (OCBC cards) is the lowest, but it has only three stations here. Among companies with sizeable networks, Caltex again has the best offer - $2.47 with OCBC Voyage card. Shell's $2.78 (UOB One card) is the highest.
For 98-octane, Sinopec's $2.77 (OCBC cards) is the lowest, followed by Esso's $2.89 (DBS Esso card) and SPC's $2.94 (all participating cards).
The rebound puts an end to a short reprieve last Thursday when most operators lowered 92- and 95-octane prices to below $3 after oil prices slid.
The benchmark Brent crude has since rebounded, from US$98 a barrel last week to US$117 a barrel during early trading on Wednesday (March 23), as talk of a ban on Russian oil exports resurfaced.
Regular petrol prices here have not been above $3 until this year. Last week, pump prices fell below $3, starting with Esso, which lowered its prices by 10 cents across the board. As at last Thursday (March 17), its 92-octane petrol was $2.95, 95-octane $2.99 and 98-octane $3.46.
Apart from the Ukraine crisis, global oil prices have been boosted by strong consumer demand as the world moves on from Covid-19, while supply has not kept pace with demand.

 

[LITTLEREDDOT]

Singapore core inflation eases in February but jump in car prices drive up overall inflation​

Car and accommodation cost increases are also likely to remain strong in the near term. PHOTO: ST FILE

Sue-Ann Tan
Business Correspondent

Mar 23, 2022

SINGAPORE - The rise in Singapore's core consumer prices slowed last month on lower inflation for services, food and electricity and gas, figures released on Wednesday (March 23) showed .
Core inflation, which strips out accommodation and private transport costs, eased to 2.2 per cent year on year last month after it hit a 10-year high of 2.4 per cent in January.
This surprised economists polled by Bloomberg who expected it to continue its upward climb to 2.6 per cent.
However, overall inflation increased to 4.3 per cent last month, up from 4 per cent the month before, on the back of a jump in private transport inflation.
Global inflation is expected to stay high for some time before easing in the latter half of the year, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in a joint statement.
"In the near term, heightened geopolitical risks and tight supply conditions will keep crude oil prices elevated. Supply-demand mismatches in commodity markets due in part to geopolitical factors, bottlenecks in global transportation, as well as labour shortages in a number of Singapore's major trading partners, are also likely to persist."
They added that, while ongoing external supply constraints should ease in the second half of this year, leading to some moderation in imported inflation, there remain upside risks to inflation from geopolitical and pandemic-related shocks.

MAS is expected to tighten monetary policy again at its next review in April, according to economists, which will allow the Singapore dollar to appreciate further. The central bank last tightened monetary policy in a surprise off-cycle move in January.
"On the domestic front, the labour market should continue to tighten and lead to strengthened wage pressures over the course of the year. Cost increases are likely to filter through to higher services prices as private consumption picks up," MAS and MTI said.
Experts noted that the full effects of the Ukraine war will be felt in the coming months.
Maybank Kim Eng economists Chua Hak Bin and Lee Ju Ye said: “The Ukraine-Russia conflict intensified in March, driving both food and energy prices higher and disrupting commodity supplies. Core inflation will likely jump in March.

“Domestically, rising wage costs in a tighter labour market and stricter foreign worker measures will filter through to higher services prices.”
OCBC chief economist Selena Ling added that petrol prices will also feed into transport costs, so it just depends on how fast transport operators adjust their fares, although there may be a bit of a time lag for such increases to take effect.
She said: “MAS will tighten monetary policy at the upcoming April meeting, to combat elevated imported inflation, but it’s just a question of how potentially hawkish they may be.”

Car and accommodation cost increases are also likely to remain strong in the near term, keeping headline inflation elevated, they noted.
Private transport costs last month jumped by 17.2 per cent, up from the 14 per cent increase the month before, after Certificate of Entitlement (COE) premiums jumped in February.
COE premiums for Category B and Open Category were at their highest since 2013 during the bidding exercise on Feb 23. The premiums for the larger and more powerful cars in Category B rose the most, from $86,102 to $93,590 - a jump of almost $7,500.
This was followed by the Open category, which can be used for any vehicle type but ends up being used mainly for large cars. Prices went up by $6,102, from $87,000 to $93,102.

The cost of retail and other goods also rose, by 0.2 per cent year-on-year from a decline of 0.3 per cent in January.
Meanwhile, accommodation inflation also edged up, to 3.3 per cent from 3.1 per cent in January, due to a larger increase in housing rents.
On the other hand, electricity and gas prices rose at a slower pace, as the average electricity prices paid by households under the open electricity market saw a smaller increase.
Inflation for this category reached 16.7 per cent last month, a drop from 17.2 per cent in January.
Food inflation also eased, to 2.3 per cent last month from 2.6 per cent the month before.
MAS and MTI noted that lower inflation for non-cooked food such as fish and seafood, as well as fruits and vegetables, more than offset higher inflation for prepared meals.
Services inflation also fell, to 2 per cent, from 2.4 per cent in January, as the cost of telecommunication services fees declined more sharply, while inflation for holiday expenses eased.
"At the same time, inflation for airfares moderated in February as the relaxation of testing requirements led to lower cost of mandatory Covid-19 tests under the vaccinated travel lanes," MAS and MTI said.

Core inflation is forecast to pick up further in the near term, and could reach 3 per cent by the middle of the year before easing in the second half of 2022 as external inflation recedes, they added.
The rising cost of air travel is expected to account for a significant part of the increase in core inflation in the near term.
For 2022 as a whole, core inflation is projected to average 2 per cent to 3 per cent while overall inflation is forecast to come in within 2.5 per cent to 3.5 per cent. These official forecasts were unchanged after being raised in January.

 

[Hypocrite-The]

I just had a cup of milo kosong for $1.80ct at a kopitiam which i think is too much.

Just make yr own.

 

[LITTLEREDDOT]

Forum: Taxi fares - More than fuel prices affecting cabbies' income​

Mar 31, 2022

I do not agree with the move by ComfortDelGro to temporarily raise fares for all its taxis to cushion the impact of a rise in fuel prices (ComfortDelGro to temporarily raise distance fares from Monday, March 29).
Fuel price increases affect everyone, as our daily lives as well as the production of goods and services require the input of this crucial commodity.
Many businesses have also seen their profits shrink during this pandemic, but not all have increased their fees to cushion the impact on their bottom line.
Fuel prices are not entirely to blame for the drop in taxi drivers' income.
The reduced demand for taxi services as well as competition from private-hire companies should also be considered.
An increase in fares may drive the demand for taxi services even lower, as commuters seek alternative cheaper modes of transport.
ComfortDelGro announced a fare increase less than a month ago.

The company had also earlier reported a 114 per cent increase in earnings in the 2021 financial year and proposed 2.1 cents per share dividend.
The company has the responsibility to assist drivers, and it seems it has the means to.
It should not pass the buck of increasing cabbies' earnings to the commuter to maintain its profit margin.

Foo Sing Kheng

 

[Boliao]

It's just the beginning and it will get worse. A global food shortage is coming and as Singapore stops its support for business post COVID, retrenchment under the pressure of a prolonged lustre business environment is next.

 

[winners]

 

[Robert Half]

In past years .. people who made dubious investments & lose money.

Men (suckers) that had been feeding those sluts (without gratitude).

They will be the ones that are worrying now

 

[LITTLEREDDOT]

Singapore electricity tariffs rise by about 10% amid Ukraine war​

The electricity tariff for the period April 1 to June 30 will be 27.94 cents per kilowatt-hour (kWh). PHOTO: ST FILE

Ang Qing

Mar 31, 2022

SINGAPORE - Most households will pay higher electricity bills for the next three months, with the electricity tariff for the next quarter going up by about 10 per cent as the Russia-Ukraine war persists.
The electricity tariff for the period April 1 to June 30 will be 27.94 cents per kilowatt-hour (kWh) excluding the goods and services tax (GST), said grid operator SP Group on Thursday (March 31). This is up from the current rate of 25.44 cents per kWh.
SP Group said households living in a four-room Housing Board flat - which typically consumes about 349 kWh of electricity a month - can expect their average monthly electricity bill to go up by $8.73, excluding GST, almost double the increase in the previous quarter.
"The increase is mainly due to higher energy cost arising from significantly higher global gas and oil prices exacerbated by the conflict in Ukraine," said SP Group.
In recent months, electricity prices have increased worldwide after gas prices hit record levels. This is due to a confluence of factors including unanticipated demand for gas from pandemic-recovery, severe weather events and reductions in the global gas supply.
While the global energy crisis was expected to ease as winter wanes, fears of production shortages in oil and gas have escalated since Russia invaded Ukraine five weeks ago. Russia holds 12 per cent of the world's oil supply and 17 per cent of its natural gas.
Any disruption to gas and oil will affect countries reliant on gas imports such as Singapore, which depends on imported gas for about 95 per cent of its electricity needs.

Electricity tariffs in Singapore are calculated from four components.
Fuel costs, which reflects the cost of imported natural gas and tracks the price of oil, make up about half of the tariff. The rest covers other costs related to activities such as maintenance of power plants, meter-reading and transporting electricity through the grid.
This quarter's electricity tariff have risen in tandem with fuel costs, which have risen by about 20 per cent compared with the first quarter of this year.
The regulated electricity tariff set by SP Group is reviewed each quarter and approved by industry regulator Energy Market Authority (EMA).
About half of households here buy electricity from SP Group under the regulated tariff. Other consumers on fixed price plans with retailers will not see any price increases until they renew their contracts, where they are likely to see higher prices.
Still, the revised tariff for the next three months remains lower than the peak tariff in the past decade, which was 28.78 cents per Kwh excluding GST in the second quarter of 2012, as well as the highest recorded tariff in Singapore at 30.45 per Kwh excluding GST in the fourth quarter of 2008.


The regulated tariff hike comes as Singapore bolsters efforts to secure its energy supply and support consumers here amid volatile electricity prices.
On Thursday, EMA announced the extension of energy security measures as well as a one-month extension to a scheme that helps large electricity users secure temporary fixed price contracts.
Separately, the Ministry of Finance said about 950,000 lower- to middle-income households here living in Housing Board flats will receive vouchers to defray GST and other living expenses as announced in this year's Budget.
The vouchers dispersed to these households amount to about eight to 10 months' worth of utility bills for the average household living in one- and two-room flats, and about four to six months for those living in three and four-room flats.

 

[Robert Half]

WTI crude oil prices per barrel is about USD $100 plus today

I am so happy

 

[LITTLEREDDOT]

Daiso stores in Singapore to increase prices from May 1​

All prices at Daiso will be exclusive of the goods and services tax from May 1. ST PHOTOS: KELVIN CHNG, DEON LOKE

Melissa Heng

Apr 14, 2022

SINGAPORE - Shoppers at Japanese discount store Daiso will soon have to pay more than $2 per item.
The budget retailer, known for pricing all its household and lifestyle products at a flat fee of $2, will no longer include the goods and services tax (GST) within that cost from May 1.
Notices were seen at the entrances of various outlets on Thursday (April 14), including at the Ion Orchard and Tampines 1 stores, informing customers of the impending price change.
According to the notice at the Tampines 1 outlet, all prices at Daiso will be exclusive of GST from May 1.
A check on the Inland Revenue Authority of Singapore's website showed that Daiso has been a GST-registered business since April 2019.
Shoppers The Straits Times spoke to said they would not be deterred by a slight price increase.
Teacher Wu Xin, 42, who shops at Daiso every weekend, said she was not aware that prices would increase soon.

She said: “I think, from a consumer’s point of view, of course the cheaper, the better... but a marginal price increase would not stop me from patronising Daiso.”
Another teacher Terry Moran, 55, said he was not surprised that prices would be going up.
He said: “I shop here about once a month. With oil and petrol prices also going up, I’m really not surprised that they are increasing prices. I will still shop here though.”

But some said the price increase might push them to look for alternatives.
Retail worker Lin Gao Ming, 25, said: “I like Daiso because it’s convenient and cheap. I think the price increase would make me reconsider shopping here. Maybe I’ll go to the supermarket instead.”
Shoppers who frequent other budget retailers such as ValuDollar said that their wallets are feeling the pinch as rising inflation takes its toll.
Teacher and mother-of-two Shamala Pubalasigam said: “When the price of everything goes up but our income doesn’t, middle-income citizens like myself will suffer.”
The 45-year-old shops at ValuDollar every week for daily essentials.
She said: “If prices continue to go up, we will struggle to meet our daily needs. Even if we try to buy things online to save money, there’s going to be a tax too.”
A spokesman for retailer ValuDollar said prices on the shelves are inclusive of GST, and that the store will continue to keep prices low for customers.
He said: “Raw material, freight, and operation costs have increased significantly, there is no denying that. However, we have been working hard to find alternative sources to keep our prices competitive. Wherever possible, we are reducing our profit margins so that we can keep prices attractive and pass on the savings to our end consumers.”
The Straits Times has reached out to Daiso Singapore for comments regarding the GST charge on its products.
Singapore's GST rate will increase from 7 per cent to 8 per cent on Jan 1, 2023, and from 8 per cent to 9 per cent on Jan 1, 2024.

 

[LITTLEREDDOT]

Singapore inflation jumps to 10-year high in March on higher food, services and transport prices​

Food inflation rose 3.3 per cent year-on-year in March, up from the 2.3 per cent increase in February. ST PHOTO: THADDEUS ANG

Choo Yun Ting
Business Correspondent

Apr 25, 2022

SINGAPORE - Consumer prices in Singapore saw a spike last month on the back of higher food, services and private transport costs, with inflation hitting a 10-year high, according to data released on Monday (April 25).
Core inflation - which excludes accommodation and private transport costs - jumped to 2.9 per cent in March on a year-on-year basis, from 2.2 per cent the previous month.
This topped the 2.5 per cent rise forecast by economists in a Bloomberg poll, and was the highest rate seen since March 2012.
Core inflation is forecast to pick up further in the coming months, before moderating towards the end of the year as some of the external inflationary pressures ease, the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in a joint statement on Monday.
Overall, consumer prices spiked by 5.4 per cent last month, more than the 4.3 per cent increase the month before and the fastest pace since April 2012.
On a month-on-month basis, core inflation increased by 0.7 per cent in March, while overall consumer prices rose 1.2 per cent.
External inflationary pressures have intensified amid sharp increases in global commodity prices and supply chain disruption, and these conditions are likely to persist, MAS and MTI said.


At the same time, the labour market is expected to remain tight in Singapore and support consistent wage increases over the year.
"Amid improving demand, greater pass-through of accumulating business costs to consumer prices is likely to occur, keeping core inflation significantly above its historical average through the year," the two agencies said.
In addition, overall inflation is expected to pick up by more than core inflation this year, as private transport and accommodation inflation is expected to stay firm in the near term, they added.

Private transport inflation was up 21.5 per cent in March, compared with the 17.2 per cent increase in February, due to a larger increase in car and petrol prices.
Food inflation rose 3.3 per cent year on year in March, up from the 2.3 per cent increase in February, as the prices of both non-cooked food and food services increased at a faster pace.
Services inflation was higher at 2.6 per cent in March, compared with 2 per cent in February, primarily due to a larger increase in the cost of other transport services and holiday expenses. The costs of recreational and cultural services and point-to-point transport services also picked up more strongly.
Electricity and gas prices also rose at a faster pace of 17.8 per cent in March, compared with the 16.7 per cent increase in February, with the average electricity prices paid by households under the open electricity market seeing a larger increase, against the backdrop of higher global oil prices.

Earlier this month, Singapore's central bank took a more aggressive double-barrelled move to tighten monetary policy, in a bid to slow the inflation momentum.
It recentred the midpoint of the exchange rate policy band at the prevailing level, and slightly increased the rate of appreciation of the policy band.
MAS also raised its inflation forecasts for 2022, citing sharp gains in global commodity prices since late February and renewed supply chain disruptions brought about by both the Ukraine war and the Covid-19 pandemic.
It expects core inflation to come in at 2.5 per cent to 3.5 per cent this year, versus a prior forecast of 2 per cent to 3 per cent. Overall inflation is forecast at 4.5 per cent to 5.5 per cent, up from the earlier range of 2.5 per cent to 3.5 per cent.

 

[LITTLEREDDOT]

Prices of food, electricity and gas to continue rising in Singapore: MAS​

A rise in global food prices will lead to higher domestic non-cooked food inflation in Singapore over time. PHOTO: ST FILE

Sue-Ann Tan
Business Correspondent

Apr 28, 2022

SINGAPORE - Going grocery shopping might soon burn an even bigger hole in consumers' pockets, as the cost of non-cooked food is expected to continue rising even beyond this year as a result of global shocks, a review by the Monetary Authority of Singapore (MAS) showed on Thursday (April 28).
The cost of electricity and gas will also be pushed up this year, as the recent surge in global energy prices raises the prices of oil-related items.
MAS said that overall the surge in global energy and agricultural commodity prices will raise domestic inflation for fuel, electricity and gas and non-cooked food, which will in turn feed into higher prices for transport and food services over time.
"The Russia-Ukraine conflict will have significant repercussions on global prices of food, which had already risen to close to record levels before the war," said MAS.
"As Ukraine and Russia are both major global exporters of grains and edible oils, the conflict has led to steep price increases in these commodities."
Brent crude oil, natural gas and wheat have gone up 33 per cent, 80 per cent and 43 per cent respectively so far this year.
Fertiliser costs have also been pushed up by reduced supplies from Russia and Ukraine, which could lead to lower agricultural yield as farmers worldwide scale back on the use of fertilisers, it added.

Meanwhile, poor weather conditions in other major grain-producing regions like China and parts of America mean that the shortfall in grain supply is expected to persist till next year.
"Reduced grain supply will result in a protracted increase in the cost of animal feed, that will eventually translate to higher global prices of meat and dairy," it said.
This rise in global food prices will also pass through to Singapore's import prices, which will lead to higher domestic non-cooked food inflation over time.

But the good news is that the increase is expected to be gradual in the short term and more modest than global indices, MAS said.
"The incomplete short-run pass-through of higher costs to domestic prices likely reflects firms' ability and willingness, at all stages in the supply chain, to temporarily absorb some cost changes within their profit margins with the aim of preserving market share," it added.
Singapore's diverse sources of imported food also help to moderate the impact of these supply-driven price shocks, it said.
But eventually, domestic food prices will still reflect the higher level of global food prices, which are expected to persist even beyond 2022.

Meanwhile, oil-related items will also see price increases, MAS said, noting that the pass-through of global oil prices to domestic petrol pump prices was rapid.
"The surge in European gas futures as a result of the war spilled over to Asian gas futures prices, while some Russian oil has also effectively been kept off the international market due to import bans and 'self-sanctioning' by major oil traders and firms," it said.
Brent prices are projected to remain at a considerably higher level than before the hostilities, reflecting tight supply conditions, and the potential for further oil supply disruptions, it added.
For 2022 as a whole, Brent crude oil prices are forecast to average US$105 per barrel, 49 per cent above the US$71 last year.
"Elevated global oil prices, following the surge in March, will continue to place upward pressure on energy tariffs in the third quarter," MAS said.
It warned that while households on fixed price plans under the Open Electricity Market are temporarily insulated, upcoming renewals of their contracts will occur at sharply higher rates that will reflect the step-up in global energy prices.
Core inflation - which excludes accommodation and private transport costs - already hit a 10-year high in March. Both core inflation and headline inflation saw larger increases in the first three months of this year, compared with the last quarter of 2021.
Higher electricity and gas and non-cooked food inflation accounted for around a third of the increase in core inflation, MAS observed.
This was partly the result of stronger price increases in fish, seafood and meat.
"Labour shortages in Singapore's key meat import source countries like Brazil and Malaysia as well as elevated feed costs drove poultry prices higher. The pace of price increases of fruits and vegetables also remained elevated," MAS said.

As consumer demand recovered, inflation for discretionary services and retail goods also rose.
This includes higher prices for hawker and restaurant meals, taxi and private hire car services, sport services and other fees, cinema tickets and charges to places of interest.
Import costs also rose more strongly for travel goods and handbags, apparel and clothing accessories, and photographic apparatus and equipment.
Airfares inflation also jumped, contributing to about a fifth of the increase in core inflation, MAS noted. But as Covid-19 test requirements here and in other destinations were relaxed, the inflation in airfares moderated.
Essential services inflation also rose, with price revisions such as the public transport fare hike and increase in household refuse collection fees.
The effects of some preschool subsidies introduced early last year also faded, contributing to the step-up in education inflation.

 

[LITTLEREDDOT]

Rising costs: Your daily bread is going to be more expensive​

The conflict in Ukraine has caused the price of flour, eggs and butter, ingredients in bread and pastries, to go up. ST PHOTO: LIM YAOHUI

Tan Hsueh Yun
Food Editor

PUBLISHED

Apr 30, 2022

SINGAPORE - Your daily bread, bagel, croissant, curry puff, pasta and pizza may cost more soon - if food businesses here can no longer absorb the increases in the prices of ingredients such as flour, eggs and butter.
The logistics and supply chain disruptions that the pandemic wrought were just easing when the Russia-Ukraine war erupted.
Fuel prices have soared and supplies have been disrupted, prompting those same problems to come back with a vengeance.
Bakeries, restaurants, snack chains and home-based food businesses that use flour are feeling the pinch. Most are keeping prices steady and waiting to see what happens next.
Raise prices and they risk alienating customers, who are already cutting back on spending in a time of uncertainty.

Prices go up and up​

Russia and Ukraine export a quarter of the world's wheat, The New York Times reported, and the ongoing war is causing shortages and price increases.
Other factors are also impacting the supply of wheat, which is milled into flour. Weather disruptions have affected wheat production over the last two years, and adding to these woes are skyrocketing fuel prices.

​

Citing data from the International Monetary Fund, NYT reported that the price of wheat has spiked 80 per cent between April 2020 and December last year.
Singapore imports wheat from the United States, Canada, Japan, Italy, Vietnam and other countries, and businesses have been hit hard.
Curry puff chain Old Chang Kee, which has about 90 outlets, uses more than 50,000kg of flour each month, says chief financial officer Song Yeow Chung.


The flour, he adds, is from a local supplier and prices had gone up 10 per cent before the Russian invasion and are expected to rise another 10 to 15 per cent soon.
The supplier attributes this to the drastic increases in wheat prices and freight rates.
Mr Song says the company is looking at getting its supply from Indonesian and Malaysian flour mills.

Old Chang Kee had to pay 10 per cent more for flour before the Russian attack and prices are expected to rise again soon. PHOTO: OLD CHANG KEE

Chooby Pizza in Owen Road, which serves Neapolitan-style pizza, uses Italian flour for its pies and gets it from a local supplier.
Owner Mason Lim usually buys the flour in 25kg bags. But in the last two months, the supplier could sell him only 1kg retail bags as there was a shortage of packing materials for the larger bags.
The price hike was steep: In 25kg bags, the flour costs $2 a kg. In retail bags, it is $4.60 a kg, he says. Otherwise, the price of the flour has remained the same.
Home-based food business The Crane Grain buys its flour in 1kg bags because there is limited storage in baker Pah Qifan's home.
He has had to pay more for plain and cake flour, which he buys from baking supplies chain Phoon Huat and now pays 20 cents a kg more for them.
"Phoon Huat's prices for both types of flour had remained constant since late 2020 - even in the midst of supply chain disruptions from the pandemic - and it seems only fair it is increasing their prices now, on a par with inflation."
Heartland bakery The Pine Garden in Ang Mo Kio has seen an even steeper increase in the price of the flour from the US and Canada that it uses. Managing director Wei Chan says the price has gone up 19 to 30 per cent since the start of the year.
Simply changing brands of flour or suppliers is out of the question for most of these businesses.
Chooby's Mr Lim says: "I have tried using flours from different producers and suppliers, but have not managed to find any I'm happy with.
"Some issues include clumping due to poor storage and handling, making the flour difficult to mix and also causing dough and fermentation problems. Some flours also smell musty and unpleasant, and contain flour insects."

Changing suppliers is simply out of the question for heartland bakeries and home-based businesses. PHOTO: LIANHE ZAOBAO
For home-based businesses, it is often not practical to switch suppliers.
The Crane Grain's Mr Pah says: "For now, Phoon Huat is still the best option. It is also my main supplier for ingredients such as sugar, leavening agents and packaging materials. Having to deal with an additional supplier and hit its minimum order quantity for a home-based business would be more of a hassle."
Pastry chef Maxine Ngooi of Tigerlily Patisserie in Joo Chiat Road is paying 5 to 10 per cent more for the Japanese and French flour she uses.

"We have considered other sources, but it is difficult to switch because the premium quality of our bakes would be affected by the flour we use," she says.
Flour is not the only ingredient getting more expensive. The businesses interviewed here are also grappling with price hikes for ingredients such as butter, eggs, chicken, sunflower oil and coffee.
Mr Lim Yew Aun, chef and co-owner of The Cicheti Group, which has four Italian restaurants, says that while the price of the Italian flour they use has remained stable, he has seen a 20 per cent jump in the price of sunflower oil.
Ukraine and Russia are the largest exporters of sunflower oil, Time magazine reported.
If the war continues, the price of snacks such as potato chips will also go up.
Ms Whang I-Wen, who runs home-based Able Bagel, says: "The biggest jump I've seen is in coffee prices - 1kg has gone up by $4. Dairy products such as butter has increased by a whole dollar per 250g. Cheeses are also more expensive, up by about $1 per kg."

Coping strategies​

Some businesses such as Patisserie G are coping by cutting products and careful logistics planning. PHOTO: PATISSERIEG/FACEBOOK
Still, businesses are reluctant to pass on the costs to consumers.
Ms Gwen Lim, who runs the Patisserie G chain and also B.A.O. or Bakery Artisan Original, which supplies bread to food businesses, buys flour from Malaysia, Vietnam and France.
Prices started going up in September last year, by 7 to 15 per cent.
For the patisserie business, she is streamlining the number of products and cutting out the ones that do not sell well, planning logistics more carefully to save on fuel costs, and bringing in equipment and machinery to deal with rising staff costs.
Old Chang Kee's Mr Song says: "We treasure our customers a lot and will increase prices only if we have no choice. Our past records show that our price adjustments are usually in a conservative range of 10 to 20 cents.
"Currently, our strategy to counter rising costs and maintain prices is to invest in branding, information technology, machinery, and new product innovations. Our fixed costs, such as rental and labour, are substantial, so doing this helps increase our sales per outlet and alleviate the fixed-cost pressures."
Home-based outfits are also trying to keep costs manageable without increasing prices.

Ms Whang says: "I try to buy my ingredients in bulk if they're not perishable. I also stock up when an ingredient goes on sale, so we can keep costs as low as possible."
Mr Xavier Lee, who runs pastry business Flourcrafts, adds: "I order less perishable ingredients in bulk, with friends in various patisseries so we can also reach the tiers for discount and delivery.
"I'm encouraging customers to place pre-orders, arranging specific windows of collection so I can minimise food wastage and also manage production and the running cost of electrical equipment like the oven."
Humble Bakery, which started in September last year, is known for its scones and burnt cheesecakes. It is grappling with a 20 per cent price hike for eggs, and also paying more for butter, cream, electricity and delivery charges.
Co-founder Tan Zhuo Guan says: "We are a very small establishment and a price increase can hurt our sales. We can only continue to take in pre-orders, monitor and absorb the price increases at the moment, and hope to get more sales to cover the rising overheads."
Mr Daniele Sperindio, group executive chef of the Il Lido group of Italian restaurants and bars, says: "We engineer our operations to become leaner and more efficient. We collaborate with suppliers and importers to share the pain of price increases, and find new creative ways to transform humble ingredients.
"Occasionally, we simply absorb the increased costs, thinning our margins and waiting for better times to come."

If prices of ingredients continue to increase, the cost will have to be passed on to customers. PHOTO: ST FILE

Trigger point​

What if better times never come?
Ms Lim of Patisserie G says: "I am watching closely what happens with the war in Ukraine. I believe prices may go up by 20 per cent or more. If so, we will have to pass it on to the consumers. And it will be quite immediate."
Mr Guillaume Pichoir, chief executive of Da Paolo Group, adds: "We are generally looking to align our prices to current inflation levels. Most of our operation costs have become much higher. Most recently, electricity prices have been skyrocketing, manpower costs are a major concern, and freight prices have increased for all imported goods."
Japanese bakery chain Gokoku says the price of the Japanese flour it uses has risen by more than 17 per cent, along with the prices of eggs, dairy products, dried fruit, packaging and utilities. Labour costs have also gone up 20 per cent since the pandemic started.
A spokesman says the company would review the situation in the second or third quarter, and if there is a price increase, it would be in the 10 to 30 cent range.
"At the moment, we are absorbing the increase in raw material costs. However, this is not sustainable in the long term.
"In order to continue providing the quality products Gokoku is known for, we have to review our pricing to stay competitive."

 

[LITTLEREDDOT]

Paying $$$$ to town councils and their mayors to look after housing estates is expensive.
Cheaper to let HDB manage the estates.

Put HDB in charge of maintenance for housing estates instead of town councils: Murali Pillai​

The HDB had taken on the role of estate manager before the Town Councils Act was passed in 1989. PHOTO: ST FILE

Ng Keng Gene

May 10, 2022

SINGAPORE - An MP has proposed that the Housing Board handle maintenance for public housing estates, to manage the rising costs of such services and address other challenges that town councils have faced in providing them.
In his adjournment motion on Monday (May 9), Mr Murali Pillai (Bukit Batok) made the case for the re-centralisation of estate maintenance resources under HDB.
He cited how new Build-To-Order (BTO) projects would have "significantly higher" maintenance costs compared with older blocks as they are high-rise and have extra "green" features. Town councils also will not enjoy any economies of scale for such costs, he added.
The HDB had taken on the role of estate manager before the Town Councils Act was passed in 1989 to give elected MPs autonomy to run towns by decentralising the management and maintenance of HDB estates.
In response, Senior Minister of State for National Development Sim Ann said: "We would think very carefully before re-centralising township maintenance... because devolution is at the heart of the town council concept."
She noted that it will not be feasible for the Government to fully fund cost increases, as inflationary pressures are affecting all sectors - not just estate maintenance.
In his speech, Mr Murali had highlighted a misalignment of incentives between the HDB and town councils, which could lead to increased maintenance costs.

​

HDB - as the developer - may not adequately consider maintenance costs in its building designs, he said, noting it has different motivations from a maintenance contractor.
Newer high-rise BTO projects, for example, have pressure reducing valves installed to ensure the water supply is working well, he added. Some green areas require specialists to maintain them, instead of general landscaping contractors.
Having these BTO projects in mature estates also raises the issue of equity, said Mr Murali.


He said residents of older flats could potentially be helping to bear the higher maintenance costs of newer BTO flats. This is because town councils do not differentiate between residents of newer and older flats when collecting service and conservancy charges, which go towards funding such works.
On the lifespan of common properties in older estates, Mr Murali argued that service and conservancy charges should be used to maintain such infrastructure, but not to replace them when they have exceeded their lifespan.
He thus urged the Government to review the current system of estate management, and consider having HDB take charge of maintenance services.
If this is not feasible, the authorities could alternatively ensure service and conservancy charges are not used for renewal of infrastructure or to address design issues in BTO developments, he added.

In her response, Ms Sim said long-term cost increases will have to be borne by all parties.
Town councils play an important role in managing cost increases, she said, adding this is why they have full autonomy to set rates for service and conservancy charges.
On possible misaligned incentives of developers and maintenance contractors, Ms Sim said HDB considers sustainability and maintainability in its design of new BTO projects. The Government will review its processes to ensure that ease of maintenance is given priority, she added.
Addressing Mr Murali's call for the Government to fund replacements of infrastructure beyond its life cycle, Ms Sim said the Government is already co-funding such works.
Town councils are required to allocate at least 40 per cent of their income to funds which go towards cyclical works, she said, adding that a similar percentage of Government grants are channelled towards these funds.
The Government will pay attention to maintenance costs in designing HDB towns and track how the costs of running public housing estates should be managed, she said.

 

[congo9]

Costs of food price has not been affected much in Johor.
I still eat the same WTM for 7rm.

 

[LITTLEREDDOT]

Surcharge for taxi rides from Changi Airport to be raised by $3 from May 19​

CAG had launched an incentive programme in April to get taxis back to the airport. PHOTO: ST FILE

Kok Yufeng
Transport Correspondent

May 12, 2022

SINGAPORE - The surcharge for taxi trips starting from Changi Airport will be raised by $3 from next Thursday (May 19) until June 30, in a move to increase the supply of cabs for passengers there.
With the increased surcharge, trips starting from Changi will cost an additional $8 every day from 5pm to 11.59pm, and an additional $6 at all other times.
The current surcharge is $5 on Fridays, Saturdays and Sundays from 5pm to 11.59pm, and $3 at all other times.
The move, announced by Changi Airport Group (CAG) in a Facebook post on Thursday (May 12), comes amid a reluctance from cabbies to go to the airport to pick up passengers despite a revival in international air travel.
According to a Facebook post by ComfortDelGro Taxi, the largest taxi operator in Singapore, the increased surcharges will also apply to trips starting from Changi Air Freight Centre, the Airport Police Station and the Airport Logistics Park of Singapore.
The surcharge hike will kick in from midnight on May 19 and end at 11.59pm on June 30.
In March, about 1.14 million travellers passed through Changi, the first time passenger volumes there crossed the one million mark since the Covid-19 pandemic began more than two years ago.

​

Passenger traffic at Changi Airport more than doubled last month from March, approaching 40 per cent of pre-pandemic levels.
This takes take Singapore to touching distance of achieving its target to restore passenger volumes at the airport to at least 50 per cent of pre-Covid-19 levels by the end of the year.
The higher number of passengers, coupled with a lower supply of taxis, has led to long queues of people waiting for cabs at the airport.


In a report by The Straits Times earlier this month, taxi drivers had said that more money could be made in the Central Business District and at night.
Coupled with high fuel costs, they told ST that they found no reason to go all the way to the airport, where they risk long periods of waiting with engines switched on.
CAG had launched an incentive programme last month to get taxis back to the airport, offering cabbies a reward of $10 for each day they made a minimum of three trips to the airport in three time windows - 6am to 10am, noon to 1pm and 4pm to 7pm.
It also gave out free coffee to drivers in the morning, but the measures were inadequate.
In response to queries, a CAG spokesman said the five taxi companies here had discussed the taxi shortage at the airport with CAG before the firms lodged plans to revise the location surcharge with the Public Transport Council (PTC).
CAG said that its own incentive programme, which was originally slated to end on April 30, will also run until May 16.
From May 17 to June 30, there will be a new scheme, in which cabbies can earn the $10 reward if they make a minimum of three trips to the airport from 6am to 9am and from 3pm to 9pm.
A PTC spokesman said the council had been informed of the taxi operators’ intention to raise the taxi location surcharge and reminded them to apprise commuters about the new fares.
It did not say when the plans to raise the surcharges were lodged.
Under a regulatory framework that took effect in October 2020, taxi operators here are required to lodge plans to change their fares at least 28 days before making the changes.
They also need to publicise the changes at least seven days beforehand.
Ms Yeo Wan Ling, adviser to the National Taxi Association (NTA), said tourist spending has traditionally been an important component of cabby earnings.
But with the new norm, drivers are still getting used to new flight timings and airport terminal arrangements, she said.
Beyond increasing the location surcharge, Ms Yeo said CAG, the taxi companies and the NTA have also coordinated to inform cabbies about flight timings in real time to ensure wait times are balanced between drivers and passengers.
The MP for Pasir Ris-Punggol GRC added: “Our drivers understand the important role that taxis play as transportation providers to and from the airport, and remain committed to providing safe and efficient rides for departing and arriving passengers.”
When ST visited the airport on Thursday afternoon, it was a mixed picture.
The wait at the taxi stand at Terminal 1 was about 10 minutes at about 4pm, but at about 4.40pm, there were quite a number of cabs lined up and passengers were able to board them almost immediately.
It was the reverse at Terminal 3, where more than five taxis were waiting for passengers at about 5.30pm, but by about 5.50pm, there were no taxis.
For ComfortDelGro cabby Robert Yeo, the plan to raise the surcharge for trips from Changi Airport is not enough to entice him to make the journey east.
The 62-year-old said he would not go to the airport unless he has to, as the surcharge hike cannot cover the cost of petrol. “If I drive an empty car there, it is not worth it. Only if I’m already taking someone there, then I’ll go,” he added.

 

[LITTLEREDDOT]

Food sellers and bakeries struggling to keep prices low amid growing cost pressures​

Prices of raw materials have spiked and other costs, such as manpower or utility bills, have also risen significantly. ST PHOTO: DESMOND WEE
Adeline Tan, Clara Chong and Ng Wei Kai

May 16, 2022

SINGAPORE - Food sellers and bakeries here are struggling to keep prices of their goods affordable amid mounting pressure on their operating costs.
Prices of raw materials such as cooking oil have spiked, and other costs, such as manpower or utility bills, have also risen significantly in the past few months, they said.
Ms Linda Tan, 58, a hawker who runs Swatow Wanton Noodle in Bedok, said: "Hawkers are really suffering, given how things like gas, water and electricity prices have all gone up."
About three months ago, she decided to raise the price of her noodles by about 50 cents, but even that has not been sufficient to cover her higher operating costs.
Prices of edible oils - such as soya bean and palm - have soared after Russia's invasion of Ukraine, with the price of palm oil more than doubling since the middle of June last year, Bloomberg reported in March.
The war has also impacted global energy prices, with Brent crude oil up by 33 per cent and natural gas by 80 per cent this year.
Russia and Ukraine are both major global exporters of grains and edible oils, while Russia is one of the world's largest exporters of natural gas and oil.

​

Mr Douglas Ng, 31, owner of The Fishball Story in MacPherson, said he had to raise the price of a bowl of noodles by 40 to 50 cents about a month ago after his utility costs more than doubled and cooking oil prices also went up significantly. Manpower costs are also rising, he added.
Bakeries here are also finding it difficult to maintain their prices after being hit by rising costs of commodities such as eggs.
However, the spike in wheat prices since India imposed a ban on its wheat exports last Saturday has had little to no impact on bakeries.
Mr Alfred Chan, who owns bakery Fredo's in Clementi, said flour prices have increased by about 60 cents per kilogram but will have minimal impact on him as flour can be bought in bulk and kept for a long time if it is stored properly.
Chicago wheat futures rose by about 6 per cent on Monday (May 16) to US$12.47 a bushel, their highest level in two months.
The price of eggs has fluctuated, rising from about $3.80 per tray to about $5, Mr Chan added. Costs of other raw materials, such as butter, have also gone up.

Ms Karen Lim, who owns Raintree Bakery and Coffee in Tampines, said prices of her supplies have been rising since the Russia-Ukraine war, with egg prices up by nearly 50 per cent.
Ms Lim, who raised prices of all items in her shop by 10 cents during Chinese New Year in February, added: "We might have to raise prices again if we cannot sustain the higher costs, but it depends on what our customers can accept. Of course, we hope that prices will stop rising, but it does not look like they will."
Some consumers, like Mr Timothy Cheong, are feeling the pinch. The 55-year-old, who works in administration, noted that groceries in the supermarket are more expensive now.
"The cost of living has definitely gone up. Just buying the same three dishes at the economy rice stall shows an increase of 30 to 50 cents," he added.

 

[tobelightlight]

Go jb and have your food lah. buy your grocery from jb lah.

 

[LITTLEREDDOT]

Pump prices reach new high despite softer oil prices and amid record profits by energy firms​

After discounts, pump prices are still at their highest ever in Singapore. ST PHOTO: ONG WEE JIN

Christopher Tan
Senior Transport Correspondent


MAY 20, 2022

SINGAPORE - Fuel pump prices have reached another new high, with posted rates breaching previous records in early March - even though oil prices are around 15 per cent lower than in March.
According to Fuel Kaki, a fuel price tracker initiated by the Consumers Association of Singapore, a litre of diesel is between $3 (SPC, Sinopec) and $3.05 (Caltex, Shell) - up to 15 per cent higher than the previous peak back in March.
A litre of 92-octane petrol now ranges from $3.13 (SPC) to $3.20 (Caltex), or 7 per cent higher than in March.
A litre of 95-octane petrol is between $3.16 (SPC) and $3.25 (Shell, Caltex), while 98-octane petrol is between $3.64 (SPC, Sinopec) and $3.74 (Shell). This is around 0.5 per cent higher than their March highs.
The so-called premium 98-grade now ranges between $3.77 (Sinopec) and $3.96 a litre - also 0.5 per cent higher than their March highs.
The benchmark Brent crude last closed at around US$109 (S$150) a barrel on Thursday (May 19), down from nearly US$128 a barrel on March 8.
RBOB gasoline, however, had gone from nearly US$3.70 a gallon in March to US$4 early this week, before settling at US$3.80 on Thursday. RBOB gasoline is an approximate proxy for wholesale petrol.

After discounts, pump prices are still at their highest ever in Singapore.
For 92-octane petrol, Caltex has reclaimed its lead as the cheapest retailer, with a price of $2.59 a litre (with OCBC Voyage card). But its rate of $2.75 (with Unlimited Cashback card) is also the highest here after discount.
For 95-octane, Sinopec is still the cheapest at $2.48 (OCBC cards) although it has only three stations here. Among retailers with sizeable networks, Caltex offers the lowest rate of $2.63 (with OCBC Voyage card), while Shell has the highest rate of $2.93 (with UOB One card).
For 98-octane, which is necessary for only a minority of cars here, Sinopec again leads with $2.86 a litre. Among retailers with sizeable station networks, Esso's $3.03 is the lowest (with DBS Esso card), and Shell's $3.37 is the highest (with UOB One card).
With the latest increase, motorists are paying around 22 per cent more than in January for a litre of the popular 95-octane fuel after discounts.
Meanwhile, oil majors have been reporting a surge in profits. According to reports compiled by USAToday, Shell trebled its first-quarter earnings to US$9.1 billion, while BP posted a first-quarter profit of US$6.2 billion – its highest in over a decade.
Exxon (marketing the Esso brand of fuels) more than doubled its earnings in the first three months of the year to US$5.48 billion, and Chevron (marketing the Caltex brand of fuels) posted first-quarter earnings of US$6.26 billion – more than four times what it made at the same time last year.