DTI: Prices of goods to ease in Q1 2019

Sun.Star Davao - - BUSINESS - /PNA

Manila -- Trade Sec­re­tary Ra­mon Lopez ex­pects prices of goods to con­tinue to de­cline in the first quar­ter of 2019 due to the de­creas­ing oil prices and strength­en­ing of the Philip­pine peso.

Lopez said al­though prices have de­creased fol­low­ing the eas­ing of in­fla­tion rate at 6 per­cent last month, con­sumers may start to feel the de­cline in prices of ba­sic and prime com­modi­ties in the first quar­ter next year.

“Cur­rent stocks of man­u­fac­tured ba­sic and prime goods in the mar­ket were pro­duced dur­ing the third quar­ter of this year when in­fla­tion, fuel price, for­eign ex­change rate, and other fac­tors surged. As th­ese be­gan to de­cline in the last quar­ter of this year, we can ex­pect that goods pro­duced in this pe­riod us­ing cost com­po­nents that are ac­quired at lower prices will be dis­trib­uted in the mar­ket early next year,” Lopez said in a state­ment Thurs­day.

The De­part­ment of Trade and In­dus­try (DTI) noted that Dubai crude oil price dropped by 14 per­cent from an av­er­age of USD79 per bar­rel in Oc­to­ber to USD68 per bar­rel in Novem­ber.

On the other hand, the lo­cal cur­rency con­tin­ues to gain strength against the green­back as it now set­tles around the PHP52-level from PHP54-to-adol­lar level in Septem­ber.

Aside from th­ese global and lo­cal de­vel­op­ments, sup­ply con­di­tions of rice and other agri­cul­tural com­modi­ties have sta­bi­lized that helped in eas­ing in­fla­tion.

DTI stressed that it will con­tinue to closely mon­i­tor the prices of goods and raw ma­te­ri­als, and en­sure that prices of ba­sic and prime goods are be­ing felt by con­sumers.

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