Tuesday, 29 March 2011

Food prices

After having a think about it since yesterday... yes, maybe its only appropriate for restaurants and cafes to exploit  extract more earnings from customers during good times (i.e. during a commodity boom and a near-to-capacity economy).

The effects of subsidies on food price change differentials (i.e. what you see at the market and what you see at the restaurants) is still anyone's guess. But right now, the data does show that the 'man on the street' is right when he says the local mamak or restaurant shouldn't be charging him that much because of the subsidy removals.

And it also remains to be seen how long this can last (although the last thing I want is for the Government to interfere in the restaurant price market....can you imagine how much this will affect quality?!)

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