MANILA - The Philippine Amalgamated Supermarket Association (PAGASA) has announced that its members will not adjust prices on certain basic commodities for the next two months. This decision aligns with a commitment from select food manufacturers to hold back price increases during this period.
According to Philippines News Agency, in an interview on Saturday, even though retailers face various operational costs, they will adhere to a self-imposed moratorium on price changes for essential items. Cua noted, "If there are upward changes in the prices of certain goods within the next two months, they are likely to be on non-essential items that are not covered by government monitoring."
This initiative comes in response to economic conditions and recent government directives, including a March 25 decision by the Department of Trade and Industry to increase the purchase cap for senior citizens and persons with disabilities, which has affected retailers' profit margins. Despite these challenges, Cua pointed out that fuel and electricity costs have slightly decreased, contributing to a general stability in prices.
However, Cua expressed concern about potential impacts on the sector from an anticipated wage hike, emphasizing the significant role of wages in retail operational costs. He suggested that decisions on wage increases should be left to the wage boards rather than being legislated, to avoid imposing unsustainable costs on retailers.
Cua also mentioned the expectation of an oil price rollback next week, acknowledging the temporary relief it would provide, though he cautioned that such trends are unlikely to persist.