GST increase, Overall cost increase or Profiteering? - - Singapore Wacky Digital Underground Outpost

GST increase, Overall cost increase or Profiteering?

8% GST is here for 2023.

GST has increased by 1% from 7% to 8% in 2023.

Logically, you would expect the cost to rise by 1%, but prices had adjusted more than 1% in many cases. Many attribute the rise in cost as a result of overall cost increase (raw materials, manpower, inflation, etc.). At the same time, some may use the guise of GST increase to subtly increase the prices by a higher percentage.

On a hunch, we decided to make a comparison between McDonald's burgers to gauge cost increases. The results may surprise you.

Big Mac 
2022 - $6.30
2023 - $6.65
Increase 5.5%

Double Cheeseburger 
2022 - $3.9
2023 - $4.50
Increase 15.58%

Filet O Fish
2022 - $3.7
2023 - $3.95
Increase 6.7 %

2022 - $2.5
2023 - $2.90
Increase 16%

As you can see, prices rose across the board. The adjustment in prices could be more consistent. A Big Mac rose by 5.5%, while Double Cheeseburger rose by 15.58%. The 'affordable' McChicken rose by a whopping 16%!

If prices increase due to overall cost increase, it is perplexing to see prices rise unevenly across the types of burgers. That said, similar things are happening at Hawker Stores, where prices rose from $3.5  to $4 for a bowl of Wanton (14.2% increase). Similarly, other fast food outlets would have adjusted their prices accordingly.

As with most cases, it is hard to trace it back to cost increase, GST increases or using the opportunity to profit. In any case, it just shows that prices are going upward.

$5 Mao Shang Wang

As much as price increases in most areas, there are still good finds around town. For one, the price of durian has tumbled. Mao Shan Wang used to sell for $20 per kilo, but now you can find them selling $5 a piece for smaller ones and $20 per piece ( about 2.5kg)

Know any other cases of price increases? Do share with us!

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