Press Release
October 17, 2007

ROXAS CALLS FOR PRICE
MONITORING AS CHRISTMAS NEARS

Senator Mar Roxas called on the executive to adopt measures to effectively check the increase in the prices of goods in the run up to the Christmas season.

"The best way to have the people feel the payback of our country's supposed economic gains is for them to enjoy truly 'happy holidays' in the midst of stable prices and supply of everyday goods," the chairman of the Senate committee on trade and commerce said.

"The executive must monitor all channels through which goods are distributed to check where unreasonable price hikes can occur, and find a way to prevent this," Roxas said.

Roxas also urged the National Price Coordinating Council to assess the situation. "We do not want to reach a point where the President must exercise her power to impose price ceilings as a last resort," Roxas said.

The Senator cited Department of Trade and Industry (DTI) data showing that the price of hard flour, used for making pan de sal, has jumped from P625.60 per 25 kg. bag last August to P697.20 at present, or an increase of 11.5%. With this, bakers have announced that they will hike pan de sal prices.

Roxas added that the price of soft flour, used for making noodles, jumped from P519.60 per 25 kg. bag to P595.40 in the same two-month period, or an increase of 14.6%. Aside from this, he noted that the cost of refined sugar has reached P38 per kilo, after remaining in the P36-territory from January to August of this year.

"Clearly, the prices of these ingredients for popular foods of Filipinos are going up in a seemingly uncontrolled fashion. I urge the DTI to find means to mitigate the impact on consumers," Roxas said.

Aside from flour, liquefied petroleum gas (LPG) cost has gone up from P25.32 per liter last month to P26.95 at present. With world crude rising to a record high of $82 per barrel, Roxas said he feared prices of LPG and other oil products may go into an upward spiral.

"LPG is a critical product that can set off a chain reaction of other price increases, hence the need to ensure adequate supply to stabilize prices," Roxas said.

Meanwhile, he said that the prevailing price of chickenwhich traditionally increases during the Christmas seasonhas already increased by 6% from P108 per kilo in March to P115 per kilo in September, as per data from the Bureau of Agricultural Statistics (BAS). Already, the September price of chicken is already 10% higher than the price in the same month last year of P105 per kilo.

"We earnestly hope that the DTI and DA have already put in place the necessary measures to keep prices and supply of chicken stable. We don't want a shortage of chicken in Christmas," he said

BAS data also show that the price of well-milled rice has increased by 8% from P24 per kilo in January to P26 in September. Regular-milled rice prices also increased by 19% from P21 per kilo to P25 in the same period.

Roxas pointed out how the rising peso should temper price hikes and bring down prices of imports.

"Prices of goods have not gone down significantly, and this shows how disconnected the financial economy is to the real economy. While the financial markets are cheering the gains made in the bourse, we have those in the palengke, the real folk, who are struggling to make ends meet," he said.

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