Our policy at FairPrice, as a market leader, is we will do what we can to be the last one to adjust prices up, but the first to adjust prices down. Rice is one good example.
Commodity prices can go down, go up and then come down again. It's not easy to predict but you can be assured that if prices come down, we will be the first to adjust down.'
Mr Seah Kian Peng, MP and managing director of NTUC FairPrice, on falling commodity prices and the impact on food prices
'The drop in commodity prices will eventually lead to lower food prices. Commodities indices have shown that it's been sliding about 35 per cent from its peak. It's simple economics: As the global financial crisis worsens, there's a downturn in global demand leading to the decline in prices. It's demand and supply.
A couple of key factors in this drop in demand from China: We're seeing the effects of the Chinese economy shutting down for a few months during the preparations for the 2008 Olympics.
Compounding the problem is that the speculative money from hedge funds and commodity funds have taken flight from commodities.
Crude oil prices are also falling, and it's a function of global demand. If this continues - supply increases and demand continues to fall - prices will definitely fall.'
CIMB-GK economist Song Seng Wun on why global commodity prices are falling and the impact