Monday, June 04, 2007

Rising cost

With the recent rise in commodity due partly to climate change and partly to China's insatiable consumption the timing of the increase in GST to 7% will hit some hard. Though there are offset packages and salary increments which never seem to keep up with inflation, it is the low to middle income that will suffer the most.

Even sugar cane juice has increased by fifty cents! Coffee and milk will soon go up too.

There has been much news on the rise of commodities. To correct the public's view that the rising cost is not solely due to the coming GST hike.

It is unfair that the problems of other countries affect us. Being resource scarce Singapore imports most of its food. And most of our diary imports from Australia. With Australia experiencing its worst drought in years, food yield is severely down.

I hope we find alternative source of supply. But it will take time. Mean while most of us will just have to bite the bullet or eat less.

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