Prices of most basic goods stable – DTI

The Department of Trade and Industry (DTI) said it is doing a lot to keep prices of basic commodities stable amid claims that it is not doing enough to control the price hikes. The latest Department of Trade and Industry (DTI) price monitoring data showed that prices of 85 percent of the basic necessities and prime commodities covered by suggested retail prices (SRP) have remained stable, Secretary Ramon Lopez said yesterday.

The monitoring data showed that the few brands went up. Not all canned products attributed the increase to higher cost of tinplate. Most prices did not move compared to November last year and June this year, he added.

“There is price stability for manufactured products in the basic necessities and prime commodities under DTI watch,” he pointed out.

Nevertheless, he said, the DTI continued to intensify coverage of monitored stores from 400 to 600 in the National Capital Region and 500 outside Metro Manila.

Other products that went up are the non essentials that precisely are being discouraged and on which excise tax were imposed such as cigarettes and alcoholic drinks and sweetened beverages.

“Other price increases were sectors affected by high oil prices, like transport and utilities. There is little we can do here,” he added.

Lopez also added that DTI is launching DTI Suking Tindahan next week to add more retail outlets, like big sari-sari stores and public market wholesalers, beyond groceries and supermarkets, that will sell BNPC at SRP prices so there will be more SRP stores accessible to consumers.

The DTI also suggested the setting up of SRP for agricultural products in the public markets so that there is greater control on price movements. He noted that the increases came from fish, meat and vegetables that come from wet market.

“Through our regional and provincial directors, we are also now talking to local government units, governors and mayors and our DA counterparts to intensify the monitoring and price guides for their local retailers and even local traders,” he concluded.

While most of the BNPCs have stable prices, the DTI monitoring showed that 35 – or a fourth – of the 139 products have increased their SRPs although only 22 products have actual price hikes.

Lopez also explained that the price hikes of some of these BNPCs cannot be blamed for the skyrocketing inflation rate which already hit 5.2 percent in June noting the inflation was largely pushed by non-essential items.

“The 5.2 percent inflation in June reflects the higher prices of products especially the non-essentials like alcoholic beverage and tobacco. Because of purposive excise tax, inflation was also affected by other essentials such as transport, education, housing utilities, and agri products – corn vegetables and meats which were affected by supply,” Lopez said.

Based on the latest DTI price monitoring in June 18-22 versus November 2017 or a month before the higher taxes under TRAIN Law took effect on January 1, 2018, it showed that 35 products out of the 139 BNPCs have adjusted their SRPs.

Lopez also stressed that only 22 products have actual price increase which is 15.83 percent only of the total number of BNPCs monitored.

In terms of basic necessities, the DTI monitored 98 products of which 10 have actual price increases. These are canned sardines in tomato sauce (two brands out of seven) with 4-7 percent price hike; one brand of processed canned milk with 2 percent increase; a coffee refill brand with 1 percent price hike; and 6 brands of candle with .2-17 price increase.

This led Lopez to conclude that prices of basic necessities have remained stable as he stressed that 83 out of 98 products monitored have no changes in prices.

“This does not support inflation increase because the products that moved up are not these products,” he pointed out.

Lopez attributed the increase in canned goods to the higher prices of tinplates in the world market and the candle to higher oil prices.

In terms of SRP of basic necessities, Lopez pointed out that only 8 SKUs (shelf keeping units) had adjusted higher their price ranges. These include 3 brands of sardines in tomato sauce with increases of 3-11 percent and 5 brands of candle with 6-8 percent price hike.

On prime commodities, the DTI monitoring showed that 12 SKUs – out of 41 –had actual price increases. These include 10 canned meat (luncheon meat, meat loaf, corned beef and beef loaf) with 1-10 percent price hike; one condiment brand with 7 percent price hike; and a toilet soap brand with 6 percent increase.

SRPs on 27 prime commodities have also been adjusted upward including 18 canned meat by 2-32 percent although one brand also reduced its SRP. There were eight condiment brands with higher SRPs at 4-15 percent while a toilet soap brand was also adjusted by 4 percent.