THE Department of Trade and Industry (DTI)- Cebu saw no price increases on prime and basic commodities since the government’s tax reform took effect at the start of the year.
DTI Cebu Provincial Director Ma. Elena Arbon said retailers are still sticking to old suggested retail prices (SRP) despite the new SRP released on Feb. 1.
This means they still have inventory of goods bought prior to the implementation of the Tax Reform for Acceleration and Inclusion (Train) Law.
DTI Cebu conducts weekly price monitoring for the cities of Cebu, Mandaue and Lapu-Lapu and monthly in the province.
However, Zaide Bation, consumer welfare head at DTI Cebu, said they might see price movements next week or when retailers replenish their inventories.
DTI Cebu’s next price monitoring is scheduled on Feb. 9.
DTI, at the start of the year, assured consumers there would be minimal effects on prices of basic goods and commodities.
“While Train is perceived to possibly increase the prices of products of basic necessities and prime commodities (BNPC) in the market, DTI’s initial assessment of applying the excise tax shows only minimal impact on the prices of basic and prime goods,” said Trade Secretary Lopez said in a statement.
The products under the BNPC that DTI monitors are the following: canned sardines; processed milk; coffee; detergent and laundry soaps; bread; instant noodles; canned products like luncheon meat, meat loaf, and, corned beef; toilet soap; and cement.
“The Train law should not immediately affect the prices of basic necessities and prime commodities because retailers still have inventories before the tax reform law took effect. As such, we encourage consumers to report to DTI retailers who are already increasing their prices using the implementation of the new tax reform law as a reason,” Lopez said.
Business establishments found committing illegal acts of price manipulation, specifically profiteering, face a fine of not less than P5,000 nor more than P2 million and imprisonment for five to 15 years.
Meanwhile, January inflation hit four percent from 3.3 percent in December.
The uptick in headline inflation for January was traced mainly to higher prices of food and non-alcoholic beverages, alcoholic beverages and tobacco items, and domestic petroleum products.
BSP Nestor Espenilla Jr. on Tuesday said the January 2018 inflation continues to be consistent with the BSP’s view of a manageable inflation environment over the policy horizon, with the average inflation expected to settle around the high-end of the government’s two to four percent target range for the year.