Prices of 'noche buena' products expected to go up

By Alvin Elchico, ABS-CBN News

Posted at Aug 12 2014 05:26 PM | Updated as of Aug 13 2014 01:26 AM

MANILA, Philippines – The Department of Trade and Industry (DTI) has confirmed that prices of several brands of meat loaf, corned beef and detergent bars have increased by P0.25-P0.50 per unit.

Trade Undersecretary Vic Dimagiba clarified, however, that despite the monitored price hikes, prices are still within the suggested retail price of these products.

The DTI said there is also a threat of price increase in several goods due to the port congestion in Manila.

Prices of canned meat, soap, milk and “noche buena” products are likely to increase in the next few months, the agency said.

Dimagiba said price monitoring now is more frequent, adding that prices are affected because manufacturers have to endure higher storage and shipment charges.

For example, if manufacturers used to spend P25,000 from port to their warehouse, they now have to shell out P50,000.

According to Dimagiba, manufacturers will pass the additional costs along the chain which will eventually result in higher prices for consumers.

"May threat talaga, whether sa noche buena products or hindi, sa cost recovery lang. Basta huwag lang sobra, nandoon pa rin ang tubo...Huwag lang pagsamantalahan,” he said.

The other issue is on supply since the port congestion has also hampered the delivery of raw materials and products to wholesalers and retailers.

But Dimagiba expects the situation to normalize before October in time for the onset of the holiday season where demand usually picks up.