Threshold for Price Increases on Food Items before Government Intervention
- Ms Ng Ling Ling asked whether the Ministry has a specific threshold for cost increases on food items before considering government intervention to stabilize prices.
- Minister Gan Kim Yong explained that global supply disruptions from the pandemic and the Ukraine conflict have led to significant price rises, but direct price controls could cause shortages.
- The government uses three measures to mitigate impacts: a strong Singapore dollar to moderate inflation, diversification of food sources to reduce exposure to regional disruptions, and support packages for lower-income Singaporeans.
- Singapore's food inflation has been more moderate than global levels, with a 4.5% increase in May 2022 compared to the FAO index's 22.8% rise.
- The government will monitor the situation and encourages consumers to use the Price Kaki app to compare prices and stretch their dollars.