Prices of consumer goods not likely to increase, says Favila

MANILA, Philippines - Prices of consumer goods are not likely to increase despite an increase in the cost of power and the problems brought about by the El Niño, outgoing Trade Secretary Peter B. Favila said.

“No one expressed interest in raising prices,” Favila said in an interview at his office.

According to Favila, the prices of processed food remain steady. He said only agricultural products are affected by the El Niño.

In terms of supply, Favila assured the public that he has received commitment from suppliers that there is enough.

The National Price Coordinating Council (NPCC) is scheduled to meet today at the Board of Investments (BOI) to discuss the effect of the El Niño on the prices of basic goods.

Favila, who resigned as Trade chief last March 5, said he will be attending as a guest and that Vice President Noli De Castro will be presiding the meeting. Newly appointed Trade Secretary Jesli Lapus will not be able to attend today’s meeting because he is out of the country.

Earlier, Favila said the government will make there is an adequate supply of substitute products for corn, rice and other goods that were damaged because of El Niño. He said they are now working on ensuring that people will be able to buy other products in place of those that were damaged by the severe heat and lack of water.

At any rate, Favila said they are prepared in case there will be spikes in the prices specifically for agriculture products. “We are ready for it.” However, Favila stressed that there is no reason for the price of processed food products to go up immediately.

He said he will call retailers for a dialogue to discuss whether the implemented price increases are justified. He said that if there really is a reason to raise prices then they will inform the public and adjust the standard retail price but if not then the current SRP remains.

Likewise, Favila said he has redirected part of the P1-billion export support fund to the government’s calamity fund. Favila said the money is now needed by people hit by calamities and not the exporters.