DTI: Prices of goods remain stable

Arem Bolalin | January 24, 2018

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According to the latest monitoring done by the Department of Trade (DTI), the prices of goods and commodities remain stable in the first 10 days of the year.

As mentioned by the Trade Secretary Ramon Lopez, there were even some items that are being sold below the Suggested Retail Price (SRP) in other grocery stores. Out of 106 items covered, 81 of it didn’t have higher prices, he added.

The effectivity of the TRAIN law that started last January 1 which includes higher excise taxes on fuel, resulted to the concern of people about the increase of basic goods and commodities that might happen.

However, the DTI noted that the increase due to the fuel tax will only affect the distribution cost minimally and that the manufacturers should just absorb it. But still, they cannot deter the consumer concerns on prices.

After the necessary computations were done, the DTI officials said that aside from cars and sweetened beverages which are the directly affected commodities, other goods should be minimal since the excise taxes would only account less than 5 percent of the overall production cost.

“We continued the price monitoring especially given the recent complaints or fears being projected on the supposed impact of the tax reform law. We dispelled the rumor, the fear being created. The prices are really stable,” Lopez stated.

Even so, the increase would be bigger as a DTI policy allows manufacturers the freedom to set the SRPs. But in such cases, prices must still be “justifiable”, Lopez said.