The Department of Trade and Industry(DTI) will issue a new set of suggested retail prices (SRPs) reflecting a 3 to 5 percent increase on some basic and prime commodities, nearly two years since the last SRP list.
DTI undersecretary Ruth Castelo said the agency is finalizing the new list but initially allowed to increase prices are coffee, sardines, canned meat, instant noodles and condiments due to higher raw material costs.
But Vic Dimagiba, convenor of Laban Konsyumer Inc., warned of the possible impact on inflation of the increases especially as food accounts for 30 percent of the indices to inflation.
According to DTI sources, more manufacturers have petitioned for a price increase and could be considered at the last-minute by the agency.
“We are waiting for the publication of the items and we want to see if all brands will be covered because that would determine if consumers will still have options,” he said.
Dimagiba also urged the DTI to consider the inventory of raw materials and the peso-dollar exchange rate for imported inputs in approving the price hikes.
“It is unfortunate that consumers are being pressured by the upcoming wave of price increases, even though many Filipinos are still trying to recover from the effects of the ongoing pandemic.
Many consumers still do not have stable means to provide for their families, and livelihoods are still being threatened by the COVID-19 (new coronavirus disease 2019) situation,” Dimagiba said.
He added the price adjustments should have a more solid basis other than the fact the SRPs have not moved for two years.
The Department of Finance has earlier sounded the alarm that food price inflation will peak this month. Inflation to date is 4.4 percent.
In the case of sardines and processed meat, manufacturers said the price of tin cans has gone up 60 percent while the costs of inputs are also up: tamban, 14 percent; meat ingredients, 20 percent and; chicken mechanically-deboned meat, 87 percent.
DTI said the price of wheat for noodles is up 56 percent and polyethylene terephthalate or PET bottles (used by condiment manufacturers) is up 37 percent.
