“We are reviewing them… We are also observing the situation, the economic situation and the price situation of the commodities involved,” Trade Secretary Alfredo Pascual told reporters on Thursday.
Pascual, who has been in office for two weeks now, said the petitions have not reached his table yet.
Former DTI Secretary Ramon Lopez said last month that some bread and canned meat producers asked for price increases, on top of the approved higher SRP for 82 products since May 11. The increases covered a wide variety of products such as milk, vinegar, soy sauce, soap, detergent, and flour.
Pascual said the requests are pending before DTI’s Consumer Protection Group.
“You will see yourself that prices have been fluctuating so it’s hard to make a rash decision when prices are fluctuating,” he noted, citing wheat and gasoline as examples. “We need to observe very well, we don’t need to rush any decision.”
The Asosasyon ng Panaderong Pilipino has sought a ₱4 increase in the retail price of pan de sal — which is currently sold for ₱2 to ₱2.50 — due to costlier flour, sugar and oil.
Costs have climbed as supply of wheat, the main component of flour, has been disrupted globally by the Ukraine-Russia crisis. A local sugar shortage also jacked up costs.
Pascual described inflation drivers as “imported,” leaving limited interventions for local authorities.
“We can’t bring down the price of wheat because that’s imported at a particular price. What we can do is to manage our own demand — go for alternatives, go for substitutes,” he added.
Some slowdown in economic activity is expected following the surprise big-time interest rate hike of the Bangko Sentral ng Pilipinas on Thursday morning at a record 75 basis point increase, Pascual said. The move sought to tame surging inflation and keep the peso competitive as foreign central banks also trigger their own lift-off mechanisms.
“If you increase interest rates, the investment propensity will go down. Consumer spending, based on installment payment, will also be affected,” the DTI chief said. “In general, it would slow down the growth of the economy unless other measures are done to counter stimulate the economy.”
Metro Manila (CNN Philippines, July 14) — Prices of widely-used goods may stay put for now as the Department of Trade and Industry (DTI) has not yet decided on the request of manufacturers to raise the suggested retail price (SRP) of bread, canned meat, and other items.
