Philippine Supermarkets Warn of Price Hikes Amid Rising Costs

Consumers in the Philippines may soon face higher prices for goods as businesses grapple with a combination of rising fuel costs, an impending minimum wage increase, higher electricity rates, and a weaker peso, according to Steven Cua, president of the Philippine Amalgamated Supermarkets Association (PAGASA). Cua stated that retailers anticipate price hikes due to multiple cost pressures. "We expect the prices of goods to increase. It's not just because of the oil price hike. We also have a minimum wage hike coming soon, electricity costs are expected to rise, and the dollar exchange rate affects imported raw materials," he explained. Fresh produce is likely to be among the first products affected, as higher fuel costs directly impact delivery expenses. "Fresh produce deliveries will be affected immediately because higher delivery costs are felt right away," Cua noted. Price increases for processed and manufactured food products are expected to take several weeks as businesses adjust to higher operating costs. Cua emphasized that many small and medium-sized enterprises (SMEs) are now focused on survival rather than just making ends meet. Overall business costs could rise by an estimated 7% to 9.5%, depending on the specific business and its operating expenses. Supermarkets do not require government approval to adjust retail prices, meaning businesses may have no choice but to pass on increased costs to consumers. Cua warned that the combination of rising labor and operating costs could force some smaller businesses to shut down. "The salary increase is already a done deal. On top of that, these additional cost increases are like a one-two punch, making the burden even heavier," he said, expressing concern that this could lead to the closure of smaller enterprises and businesses. The Department of Trade and Industry (DTI) has stated that it has not yet received requests for price adjustments from manufacturers, despite the looming oil price hike. Source: GMA Money Philippines