Cheaper products still in the market – DTI
Credit to Author: TYRONE JASPER C. PIAD| Date: Tue, 07 May 2019 16:26:27 +0000
Consumers can still find cheaper products in the market despite a hike on the suggested retail price (SRP) of some basic goods, the Department of Trade and Industry (DTI) said on Tuesday.
The DTI indicated there are companies that did not follow the higher SRP for their merchandizes for fear of turning off consumers. “Business principle dictates that companies do not necessarily increase their prices easily as they are also afraid of losing loyal customers to competition,” Trade Secretary Ramon Lopez said.
He welcomed the development, saying “[It is] very important that not all brands would increase their prices so consumers would always have a cheaper option.”
“Competition provides this assurance of having various prices and consumers having the freedom to choose,” he added.
Based on its price monitoring, the DTI reported prices for canned milk, coffee refill, 3-in-1 coffee, bread, detergent/laundry soup, candles, canned meat and batteries were not raised.
The DTI said 26 items or just 11 percent of the total 235 shelf keeping units (SKUs) had price increase. Sixty-five percent of these hikes were less than P1, it added. Also, the DTI noted that less than half of 23 sardine brands and only eight instant noodles saw price jumps. Further, the DTI said out of the 34 bottled water items, only had higher price, along with four of the 10 toilet soap SKUs and five of the 13 brands of condiments.
Lopez said the price hikes were due to the increasing raw materials which are considered SRP determinants. Raw materials with increased costs are tamban (herring), wheat flour, carton, wrappers, seasoning, raw vinegar, imported vinegar, fish extract and warehousing and logistics cost.
The DTI described the price hikes as ‘delayed’, noting that price increases were put on hold last year “so as not to worsen the issue on inflation.”
Meanwhile, the consumer group Laban Konsyumer challenged the DTI to impose price rollbacks to reflect the easing inflation. “The rising prices simply do not make sense. Inflation has been going down and within target, but why are BNPC (basic necessities and prime commodities) prices continuing to go up,” Laban Konsyumer President Victorio Dimagiba said in a statement.
Inflation has settled to 3 percent in April, falling between the government’s target of 2.0-4.0 percent range.
The post Cheaper products still in the market – DTI appeared first on The Manila Times Online.