Price hike on basic goods looms
Trade and Industry Secretary Alfredo E. Pascual has hinted of a likely increase in the suggested retail prices (SRP) on basic necessities and prime commodities (BNPCs).
In a radio interview, Pascual said the agency expects that 25 percent of requests for price adjustments may be granted at different price ranges. There are 218 stock keeping units (SKUs) or variants of the 20 BNPCs being monitored and regulated by the DTI.
While the DTI’s Consumer Protection and Advocacy Group is still studying the petition for price hikes from 15 different BNPC manufacturers, Pascual cited the likelihood of increases on 55 SKUs out of 218 total SKUs.
Of the 55 SKUs, Pascual said that prices on 10 SKUs may be adjusted by one to five percent, 14 SKUs by six to ten percent, and 31 SKUs by more than 10 percent, but which are mostly candle products.The increase is due to the high cost of imported and local materials, packaging materials, and overhead charges.
Pascual, however, did not say as to when the new BNPC SRP Bulletin will be issued. Basic goods include canned sardines, processed milk, coffee, bread, instant noodles, salt, detergent soap, bottled water, and candles, while prime commodities include meat loaf, beef loaf, corned beef, soy sauce, vinegar, fish sauce, toilet soap, and battery.
The current SRP on BNPCs was issued by the DTI on August 12 this year, which reflected price increases on 67 SKUs.
On Wednesday, Nov. 23, the DTI published the Noche Buena Price Guide as consumers start to buy food items normally consumed during the Christmas holidays. Noche Buena products, however, are not considered basic goods and therefore not regulated by the DTI.
Based on the Price Guide, a total of 195 SKUs out of 223 Noche Buena products have raised prices with almost half increased their prices by more than 10 percent and the rest with minimal hikes of one to 10 percent on higher cost of imported and local materials, packaging and overhead costs.
The Noche Buena Price Guide listed a total of 12 products comprising a total of 223 SKUS. These are ham, fruit cocktail, cheese, keso de bola, mayonnaise, sandwich spread, pasta, elbow macaroni, salad macaroni, spaghetti sauce, tomato sauce, and cream or all-purpose cream.