'Groceries can cost higher amid Middle East conflict'

Lawmaker Peter Shiu on Monday said consumers may have to dig deeper for groceries as oil prices rise amid the Middle East conflict. Speaking on an RTHK radio programme, the wholesale and retail legislator said that logistics makes up a large proportion of the overall cost for bulky items such as vegetables and tissue rolls. Shiu said that while the prices of such items have remain unchanged for now, consumers may need to bear additional costs when the next batch of goods arrives in two to three months. “The items that [retailers] are selling now were imported before. Prices for items yet to be delivered might go up. However, retailers do not want to increase prices in the current economic climate,” he said. “I think the market will wait and see how the conflict develops, as well as monitor oil prices, which could lead to an increase in transportation costs. If costs rise significantly, retailers cannot continue to sell at a loss in the long term.” Executive councillor Jeffrey Lam told the same show that buyers from places such as Europe and America have reduced the number of orders due to uncertainty and higher costs. This would cause significant pressure on SMEs in Hong Kong, he said, particularly those producing toys, plastic items, textiles and electronic gadgets. He called on banks to be sympathetic with firms on repayment and loan issues. Edited by Aaron Tam