Food Prices

86.     One of the major causes of the recent rise in inflation is surging global food prices, which have pushed up local food prices.  In the first eight months of 2011, global food prices registered a year-on-year increase of 34%, while retail food prices in Hong Kong also rose significantly by 9.1% year-on-year.  In fact, food prices and expenditure on meals bought away from home have contributed to nearly 40% of the increase in Hong Kong's underlying consumer prices.

Food Supply

87.     The Government endeavours to ensure an ample supply of food at stable prices by expanding the sources and types of food supply and reducing the risks brought about by unstable conditions in individual places.  Also, we have the support of the Central Government in the form of safeguarded supplies to Hong Kong and strengthened food quality control.  The Mainland will continue to ensure a stable supply of quality agricultural products such as grain, meat, fruits and vegetables to the Hong Kong market.

Food Banks

88.     The Government's Short-term Food Assistance Service provides immediate and direct support for people in need.  We will soon submit to this Council for approval to use the $100 million already earmarked to continue and improve this service, including providing a larger variety of foods and fresh foods.  The Social Welfare Department (SWD) will closely monitor the operation of this service.  If necessary, the Government will allocate an additional $100 million to the service.

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