Price hikes will be minimal, manufacturers assure DTI

Trade and Industry Secretary Manuel Roxas II said yesterday that local manufacturers have given their assurance that there will be "small to minimal" hikes in prices of commodities following the average 50 centavos increase in fuel pump prices.

Roxas met yesterday with representatives of the manufacturing sector who gave their assurance that the 50 centavos average increase in fuel pump prices would have "small to minimal" impact on their production cost.

"Instead, the manufacturers are more concerned with a deterioration in the foreign exchange, an increase in labor wage and an increase in energy cost," he said.

According to Roxas, the manufacturers said that they could still absorb the impact of the fuel price increase and that if they have to adjust their prices, it would be "small to minimal".

More specifically, Roxas said, the price of rice is expected to remain stable following an assurance from the Department of Agriculture (DA) that rice supplies remain "plentiful".

Roxas also met with processed meat manufacturer such as Purefoods, Hormel and Swifts who also gave their assurance of a "small to minimal" increases on their prices.

The processed meat manufacturers, Roxas said, were more concerned with the forex movement.

Wheat comprises 90 percent of the cost of local flour. Its price recently went up by around $20 per metric ton due to the recent drought experience in Montana and China.

The DTI chief disclosed that milk manufacturers such as Nestle and Alaska have already increased their prices by about 15 percent during the first five months of the year due to a 50 percent increase in the cost of imported milk solids.

Coffee, detergent, shampoo and paper manufacturers, the DTI Secretary said, projects a stable price outlook.

Thus, in general, Roxas said, "manufacturers conveyed a sense of stability in the supply situation."

The Philippine Association of Groceries and Supermarkets (PAG-ASA) assured Roxas of stability in their prices.

The PAG-ASA members, Roxas said, told him that if there would be any price adjustments, "they would load it to non-essentials such as towels, plastic ware, and frying pans."