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MTI study reveals culprit behind higher hawker food prices
Don't blame higher rents and wages.
A study by the Ministry of Trade and Industry (MTI) revealed that higher raw material costs are the biggest culprits behind higher hawker food prices.
The study showed that raw material costs account for 59% of hawkers' total costs, with a 1% increase in raw material costs associated with a 0.56% increase in food prices.
In other words, a $500 increase in monthly raw material costs leads hawker stalls to raise prices by $0.20 on average.
In contrast, manpower costs and rents only form 17% and 12% of hawkers' total costs and are less likely to be passed through to consumers.
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