Wage hike seen to cause spike in goods

By Alvin Elchico, ABS-CBN News

Posted at Mar 24 2015 05:07 PM | Updated as of Mar 25 2015 01:07 AM

MANILA – The minimum wage hike in the National Capital Region will likely result to higher cost of several basic goods.

The Department of Trade and Industry (DTI) said the spike in minimum wage translates to an average 3 percent increase in canned sardines, powdered milk, coffee and corned beef.

For canned sardines, in terms of absolute amount, the increase should be P0.02/can, powdered milk at P0.05/pack, refill coffee at P0.07/pack and corned beef at P0.03/can.

Trade Undersecretary Vic Dimagiba, however, noted that these amounts are negligible that manufacturers can absorb.

But if they still insist on reflecting these on their costs, Dimagiba said they must present some costings to justify it.

"’Di naman natin sila pwedeng sabihan na walang increase pero ganoon lang kaliit,” he said.

Meanwhile, Dimagiba is reminding stores inside or near terminals not to sell basic goods like bottled water at super high prices. But when asked how high it should be beyond the suggested retail price, he could not give a categorical answer, noting that it should not be too much.

A check with a terminal in Quezon City showed that a 350ml bottled water is sold at P20 when its SRP should only be around P10.

DTI personnel will visit bus terminals to check on prices before the Holy Week.