In-flight food prices to soar as inflation bites

The Food Price Index which increased to 230.7 in January 2011 sparked concern over the rising cost of food staples.

According to Phillip Securities Research, the Food Price Index released by the Food and Agriculture Organization of the United Nations, had surpassed the previous peak of 224.1 in June 2008. The substantial increase in food prices sparked global concern over the rising cost of food staples that could substantially increase the burden on consumers, particularly the lower wage workers.

The price hike for raw food may push inflight catering businesses to increase their food prices. SATS which has a dominant market share of 85% at Singapore Changie Airport, has a significant pricing power against airline customers.