The Department of Trade and Industry (DTI) announced that 29 percent of items included in the Suggested Retail Price (SRP) bulletin may increase prices this year.
DTI Assistant Secretary Amanda Nograles of the Consumer Protection Group told reporters in a briefing on Friday, Jan. 5, that 63 items out of 270 in the SRP have pending price adjustments.
For food products included in the 63 items, the prices will adjust to around P0.25 to P7.25.
"If we will compare the price adjustment in 2023 versus 2024, the average is around six percent compared to the over 10 percent change recorded in 2022 versus 2023," said Nograles.
The affected food items include canned sardines, processed milk, coffee, bread, instant noodles, bottled water, processed canned meat and canned beef, and condiments.
Among the non-food items in the list are toilet soap, candles, and batteries.
Nograles noted that 59 of the items were approved for a general price increase, while two items have filed for a weight reduction and corresponding price increase. The last two items applied for weight and price reduction.
Meanwhile, the prices for 71 percent or 154 items have not moved.
Nograles emphasized that not all brands and variants in each category filed for a notice of price adjustments. This means consumers can still have options among sellers and substitutes that offer lower or sustained prices.
She said that the agency is planning to start releasing the Letters of Concurrence this month, prioritizing the notices of the manufacturers who have applied since 2022 but have not yet been approved.
The updated SRP bulletin may be released sometime in the first quarter of 2024 with the adjustments, as soon as all notices have been approved, she added.
Nograles said that the DTI duly asks the manufacturers to substantiate their notice of price adjustments, emphasizing the basis for components such as proof of increased production costs.
She highlighted the passage of Executive Order (EO) No. 41, which suspends the local government's ability to collect toll fees, as having helped manufacturers reduce production costs.
Based on the letters they have received, manufacturers have cited the costs of raw materials, transport, and other logistics issues as reasons for filing price considerations.
The implementation of the adjusted prices may take effect within a month, considering the alignment of the DTI and the manufacturers' computation for the movement of prices.
"Even if the DTI releases the Letter of Concurrence or Letter of Approval, of course the manufacturer will need some time to implement the price adjustments, especially those with computerized systems who simply need to update the price lists. So there will be some lag by the time the DTI releases the notice of approval to the time the actual prices in the market are effective," said Nograles.
Meanwhile, DTI Secretary Alfredo E. Pascual remarked that "going forward, we're optimistic that we will mitigate the requests for price adjustments since our inflation rate has come down."
Shrinkflation
Nograles said the DTI is keeping tabs on shrinkflation.
Shrinkflation occurs when the price of the goods is the same but there is a change in the grammage or weight of the product. Effectively, that is a price increase because for the same amount you get less of the product.
"For basic necessities and prime commodities where the grammage was reduced but prices are retained, that should be evaluated by the DTI, especially those in the SRP bulletin. But as we've said, it's the manufacturers' business decision whether they want to change their product or reduce or keep the price," she said.
Nograles said that the role of the DTI is on informing consumers of the changes in products or price with no misrepresentation of grammage, and flagging manufacturers selling goods in the SRP list who have not filed to the agency.