Food Prices at Wet Markets up 0.2% in October (November 25, 2010)
Food prices at wet markets edged up slightly by 0.2% in October
over the preceding month.
This brought the increase in food prices overall to 5.8% above
the level in January 2009.
The increase in food prices in October 2010 was mainly
attributable to the increase in prices of fresh vegetables (6.8%).
On the other hand, prices were lower for fruits (-7.7%) in October
2010. The prices of meat (-0.9%) and fish (0.0%) were more or less
the same.
These changes in the price levels of food sold at major wet
markets were indicated in the Consumer Council's monthly Wet Market
Food Price Index (WMFPI) released today (November 25).
The overall WMFPI was set at 100 for the average food prices in
January 2009. Annexure 1 refers.
The WMFPI provides also sub-indexes for the monthly comparison
of the 4 major categories of food items, namely meat (including
pork, beef and poultry), fish (including salt-water and fresh-water
fish), fresh vegetables and fruits.
For movements in the prices levels of these 4 sub-indexes,
consumers can refer to Annexure 2.
In addition, the WMFPI analyzed and ranked the price levels of
52 wet markets in 18 districts throughout Hong Kong.
The latest statistics showed that Aberdeen Market in Southern
District, Sai Kung Market in Sai Kung District and Tai Yuen Estate
Market in Tai Po District occupied the top 3 positions with a
higher WMFPI of 112.9, 112.4 and 108.1 respectively.
At the other end of the scale were Yat Tung Estate Market in
Islands District, Hau Tak Estate Market in Sai Kung District and
Sha Kok Estate Market in Sha Tin District, with a lower WMFPI of
96.3, 95.9 and 95.4 respectively.
Amongst the wet markets surveyed, 26 markets were with a WMFPI
lower than 100, indicating food prices in these markets were lower
than the average.
A complete list of the 52 wet markets in their descending order
of WMFPI can be found at Annexure 3.
The difference between shopping in the market with the highest
WMFPI 112.9 and the market with the lowest WMFPI 95.4 could mean
savings of $2,100 a year.
This is based on the assumption: a shopper who pays on average
$1,000 a month for food bought in Sha Kok Estate Market in Sha Tin
District, will have to pay $1,175 a month for the same amount of
food bought in Aberdeen Market in Southern District.
Besides price comparison territory-wide, budget-conscious
consumers can compare the varying price levels of wet markets that
are located in the same district - and do their shopping
accordingly.
For example, in Kowloon City District, To Kwa Wan Market (97.9)
is within a walking distance of 2.3 kilometers from Kowloon City
Market (108.0), but the food prices in the latter were on average
10.1% higher than those in the former. (Annexure 4)
The price differentials between them could mean savings of $101
a month, or $1,212 a year, by shopping in the cheaper market.
Another example, in Central and Western District, Sai Ying Pun
Market (99.2) is located within a walking distance of 1.8
kilometers from Smithfield Market (103.0), but the food prices in
the latter were on average 3.8% higher than those in the former.
(Annexure 4)
The price differentials between the two could mean savings of
$38 a month, or $456 a year, by shopping at the cheaper market.
In addition, in Tsuen Wan District, Tsuen Wan Market (105.3) is
within a walking distance of 450 meters from Yeung Uk Road Market
(96.6), but food prices in the former market were on average 8.7%
higher than those in the latter. (Annexure 4)
The price differentials between them could mean savings of $87 a
month, or $1,044 a year, by shopping at the cheaper market.
It is found that the price differentials of food items sold in
different markets have decreased over time since the food price
index was published in November 2009. As indicated in Annexure 5,
the standard deviations of the sub-indexes have decreased steadily
from 4.38 in November 2009 to 3.77 in October 2010.
It should be noted that the standard deviations of the
sub-indexes in different markets is not related to the overall wet
market food price index. For example, food prices October 2010,
with an index of 105.8, were on average higher than those in
November 2009 by 5.8%. On the other hand, the differences in food
prices among wet markets were smaller in October 2010, as compared
with those in November 2009. (Annexure 6)
The increase in the overall food prices in October 2010, as
compared to those in November 2009, is likely to be the combined
result of increases in the import prices of food products and the
wholesale prices of those food products produced in Hong Kong, as
well as domestic inflation resulting in an increase in the
overheads costs of food retailers.
The narrowing of price differentials among wet markets are
likely to be result of competitive market forces as consumers, with
enhanced knowledge of food prices in different wet markets, change
their shopping habits by buying more from wet markets with lower
prices, and food retailers adjusting their prices in response to
changes in consumer demand.
The Consumer Council noted that the WMFPI is not meant to
measure price inflation, as it covers only the main food items sold
in major wet markets in Hong Kong. Official statistics on the
Consumer Price Index (CPI) should be used as indicators of price
inflation.
Starting from 10 November 2010, the Weekly Price Survey will
have wet market items added to the basket of products. The Monthly
Wet Market Food Price Index will discontinue after issuance of the
October index.
Weekly Price Survey monitors the prices of prepackaged food and
household commodities in different retail outlets. The basket of
products in the Survey will be expanded to cover the prices of
certain fresh food in supermarkets and wet markets in the same
district for consumers' reference.
The Council's survey on food and household commodities prices is
available online for viewing on its pricewatch website
http://www.consumer.org.hk/pricewatch.
The Council's survey on wet market food prices is available
online for viewing on its pricewatch website http://www.consumer.org.hk/pricewatch.
Annexure 1-4
Issued by
Consumer Council
25 November 2010
