THE weaker peso is expected to drive up prices this Christmas season, local trade official said.
Department of Trade and Industry (DTI) 7 Director Asteria Caberte said products with “high import content” will be affected by the depreciating currency.
“(By) October, we will start to feel an increase in the prices of commodities that have high import content because of the weakening of the peso,” said Caberte.
As of yesterday, the exchange rate was at P51.143.
As traders replenish their inventory for the holiday season, Caberte said this could be when price increases will be felt, although “slightly.”
“Even during Christmas season, noche buena products normally don’t have price increases. But because of this weakened peso, basin ma affected sila slightly,” she added. Bread, she said, has started to show price adjustments.
In August, inflation rose to 3.1 percent from 1.8 percent in the same month in 2016. Reportedly the fastest since April, the August inflation rate was attributed to higher food prices, as well as fuel and power alongside a weaker peso.
For food inflation, the National Economic and Development Authority reported it to be at 3.7 percent, from July’s 3.4 percent, mainly due to faster price increases in vegetables, fish, corn, flour, bread and other cereals.