Consumers turn to cheaper brands

Consumers are shifting to buy cheaper brands at the back of high inflation rates, the Philippine Retailers Association (PRA-Cebu) observed.

“With the inflation affecting almost all products specially food and all supermarket items, there has been a shift of preference among shoppers from premium to less premium and from branded to cheaper non-branded items as they still need to eat and buy food and other commodities,” said PRACebu president Robert Go in an interview yesterday.

Locally-made, products are now more saleable compared to imported and branded products, nit only for food but also in other essentials like laundry soap, personal care, baby diaper, among others.

Consumers also refrain from buying condiments during the inflation rise, along labelled ice-cream products, as well as softdrinks and flavored drinks.

Inflation or the increase in the prices of goods climbed to another 9-year high, hitting 6.4 percent in August.

Latest report obtained from the Philippine Statistics Authority (PSA) early September showed higher jump from July's 5.7 percent.

Annual increases were observed in food and non-alcoholic beverages (8.5%), alcoholic beverages and tobacco (21.6%), furnishing and household equipment (3.5%), health (4%), restaurants and miscellaneous goods and services (4%), and recreation and culture (2.4%).

The annual rate of the food index further climbed by 8.2 percent.

While the shift of buying pattern has been observed, Go said inflation effects to

Christmas shopping has yet to be determined.