Impact to Food Prices in Next Six Months Given Supply Chain Disruption and Increase in Energy Costs

Mr Shawn Huang Wei Zhong asked the Minister for Trade and Industry given the supply chain disruption and increase in energy costs, whether there will be any impact to food prices in the next six months.

The cost of food is affected by a combination of factors, including the imported prices, energy costs, freight, labour, and seasonal weather changes. Domestic food prices have risen in the past six months, due mainly to increased prices for global food commodities, higher energy prices, supply chain bottlenecks and labour shortages.

We expect food prices to rise further in the coming months as energy prices, a contributor to the global cost of food, are expected to increase. Suppliers may need to adjust prices to reflect cost increases.

To mitigate the impact of higher food prices on families, the Government will continue to assist Singapore families in various ways. For example, MSF’s Social Service Offices (SSOs) provide ComCare assistance to low-income households to support their daily living expenses. The Budget 2020 Grocery Vouchers Scheme has also helped less well-off Singaporeans with their household expenses during this period of economic uncertainty. Singapore will continue to diversify our import sources to keep prices competitive and enhance supply resilience.