Consumer advice in the face of inflation driving food prices up -CHOICE # 373

Consumers are facing significantly increased prices and reduced promotional discounts in the purchase of daily foods.

Concerned over the escalating rate of inflation, the Consumer Council has recently surveyed the market to assess the inflationary impact on food prices, and to duly advise the consumer public.

The results clearly reflected an upward price spiral in the past 12 months up to September this year in the fresh produce of many categories of daily foodstuffs.

Based on data from the Census and Statistics Department, the average retail price of eggs, for instance, rose from 85 cents each last September to $1.15 each this September, rising by 35.3%.

For best-cut fresh pork, the price hike rising from an average of $33.87 per kg to $45.02 per kg, over the same period, amounted to an increase of 32.9%.

And for best-quality fresh beef, from an average of $59.01 per kg to $74.31 per kg representing a rise of 25.9%.

In the first nine months of this year, the analysis showed that on average, the price of eggs was up over 20% compared with the corresponding period last year.

And, during the same period, prices of fresh pork, live chicken, and fresh fruit (apple and orange) also surged from 10.2% to 15.6%.

The Council also scanned selected newspaper ads on sale promotion of prepackaged foods to assess the difference in discounts given.

The result is as revealing as it is useful to consumers in taking advantage of such promotional offers.

It becomes clear that retail outlets are nowadays less generous and more restricted in their offers of price discounts to consumers.

For instance, the rates of price discount of certain prepackaged foods - evaporated milk, condensed milk, frozen dim sum, canned soup, frozen cake, tetrapak drinks, instant noodles, and packaged rice - have all been reduced compared to earlier in the year.

Secondly, traders have switched tactic requiring consumers to purchase in bulk in big quantity in order to enjoy the discount - especially common in the frozen dim sum and instant noodle categories.

Thirdly, few were such offers of "buy-1-get-1-free" or "buy-2-get-1-free". Instead, the more common promotions offer less discount rates such as "buy 1 and the second one for half price", or "buy 1 and the second one for 40% or 30% off", or others in similar vein.

To ward off the adverse effect of inflation, consumers may tend to purchase more food products offered at discounted prices.

But they will be well advised to calculate and budget carefully in light of increased prices and reduced discounts.

Consumers can consider adjusting food consumption based on their needs and purchasing power, for instance, to switch to frozen meat.

Shop around and compare different promotions offered by different outlets.

Check the expiry date for bulk purchase of discounted products giving due consideration to the likelihood of consuming the products before their expiration.

To monitor the price movement of supermarket goods, the Consumer Council conducts an annual supermarket price survey based on scanned data on a basket of daily commodities. The next annual price survey will be around April next year.