Debated in Parliament on 26 Feb 2025.
Mr Yip Hon Weng asked the Deputy Prime Minister and Minister for Trade and Industry in view of the report by the Food and Agriculture Organisation of the United Nations on a decline in global food commodity prices in January 2025 (a) whether Singapore consumers can expect a corresponding decrease in food prices; (b) if not, what are the factors contributing to food prices maintaining at current levels; and (c) whether there are measures to ensure that suppliers pass on the reduced prices down the chain to consumers.
The Monetary Authority of Singapore Core Inflation has eased significantly from its peak of 5.6% in January 2023 to 0.8% in January 2025, in line with moderating global inflation. However, domestic prices for some items, such as food, may not move in tandem with global prices in the short term. In the case of food, this is because changes in global food commodity prices take time to work through global and domestic supply chains. Moreover, domestic food prices are affected by other factors, such as energy, freight, storage and labour costs.
Nonetheless, over the longer term, lower global food commodity prices should help to moderate the pace of increase in domestic food prices. For instance, following the 22% decline in the Food and Agriculture Organisation's Food Price Index from its peak in March 2022, Singapore's food inflation moderated from its peak of 8.1% in January 2023 to 1.5% in January 2025.
The Government will continue to monitor food inflation trends closely and provide support to households to cope with higher food prices. For instance, at Budget 2025, the Government announced that an additional $800 Community Development Council vouchers will be disbursed to all Singaporean households, which can be used at participating hawkers, heartland merchants and supermarkets for household daily essentials, including food.
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