Fuel, raw material costs driving commodity prices higher: DTI

ABS-CBN News

Posted at May 24 2018 09:05 AM

FILE PHOTO: Consumers inside a 'sari-sari' store in Manila, January 2, 2018. George Calvelo, ABS-CBN News

MANILA - Prices of basic goods increased by "less than a peso" this week, reflecting higher costs of fuel and raw materials, the Department of Trade and Industry said Thursday.

Oil prices, which jumped for the second week in a row, drove the cost of distribution of basic goods by 33 percent, DTI Undersecretary for consumer protection Ruth Castelo told DZMM. 

Distribution accounts for 5 percent of the total cost of goods, she said. The DTI tracks the prices of prime commodities including canned goods, mineral water, coffee and milk. 

Watch more in iWant or TFC.tv

Higher tin plate and paper prices drove the cost of raw materials higher, after China's pollution crackdown led to the closure of some big factories, she said.

The Philippines' tax reform law, which raised duties on fuel, padded commodity prices by 4 to 25 centavos since it took effect last Jan. 1, she said.