Peso fall prompts review of prices of basic goods

The recent weakening of the peso against the dollar has prompted the government to convene the National Price Coordinating Council (NPCC) to discuss the impact of the fluctuating peso on the prices of basic goods and commodities.

The peso has been trading at around 54 to the dollar since last week following a failed military mutiny and amid persistent rumors of another coup attempt.

The peso’s temporary slide, however, had various sectors concerned about its effect on prices of basic commodities.

At the Philippine Dealing System (PDS), the peso shed by another 1.5 centavos to close at 54.815 yesterday from Monday’s close of 54.800 to the dollar. Total volume traded amounted to $125.50 million on an average rate of 54.80 to the dollar.

Trade and Industry Secretary Manuel Roxas II warned retailers yesterday not to take advantage of the fluctuating peso-dollar exchange rate to implement a hike in prices.

"There is no need for price increases at this point," said Roxas.

The DTI chief said that since many raw materials are imported, the department is requesting manufacturers and retailers to hold on to their prices.

"At the meeting, we will be talking with retailers and manufacturers to find out if prices are stable and supplies are adequate at current prices," Roxas said.

At the same time, Roxas ordered intensified price monitoring activity after typhoon ‘Harurot’ swept the country last week.

NPCC is the highest governing body for prices of basic goods and commodities. It is an inter-agency council composed of various government offices as well as representatives from the private sector.

At the height of the latest military uprising, the DTI’s price monitoring team went around groceries and retail outlets and reported that the situation was normal and there was no panic buying.