Food price hikes take toll on retailers, consumers

CEBU, Philippines - Food price hikes coupled with scarce supply is starting to take a toll on retailers and the consumers prompting changes in trading and the rate of consumption.

Retailers have noticed that while prices of food continue to go up, consumers are also starting to tighten their belts and reduce consumption thereby affecting the daily income of retailers.

"Lisura gyod sa among pagpaninda karon kay taas ang presyo sa mga palaliton," (Business is tough these days because prices are so high) lamented 48-year-old Rene Labandero, a vegetable retailer at the market center in barangay Lahug. "Unya kay nihit pud ang ubang produkto." (Some of the products have limited supply)

The man said their income everyday is just enough to 'break even' the costs they have spent for their goods, adding that some of their unsold perishable products are eventually thrown and wasted.

45-year-old Alma Pelenio, a carenderia owner, also told The FREEMAN that they have to regain what has been spent on the food ingredients by changing the quantity of their servings.

"Kinahanglan gyod mi mo-adjust," Pelenio said. "Hinuon among technique ang gidaghanon ra sa sud-an among usbon, dili ang presyo kay burden pud na sa customers." (Pelenio said instead of changing the price of their food offering, they just make adjustments with the servings so as not to burden the customers.")

She has observed a sharp increase in prices of spices which are very vital in preparing their viands.

Pelenio also added the high operating expenses has also pushed her to make some efforts to regain her capital, or even just to reach a break even.

That's why any rise in food prices is always a burden for carenderia owners and other consumers.

Meanwhile, for the Pardillo family, a vegetable retailer at the Carbon market, said their harvest this summer have significantly decreased,  prompting them to also increase the prices of  their produce.

They added that the lower production of their farm at barangay Sudlon in Balamban town is due to the dry season which has resulted to water scarcity and threatening the vegetable production.

For instance, from the normal price of P40 - P50, a kilo of their lettuce now stands at P70 - P80.

However, the National Economic and Development Authority earlier said the movement of the prices of the basic commodities can still be considered manageable.

The country's economic development body expects the inflation rate this year to reach not more than five percent, according to Vittoria I. De Veyra, supervising economic development specialist of NEDA region 7.

Recently, the Philippine Statistics Authority reported that last month's headline inflation reached 4.2 percent, higher than 3.9 percent recorded in March 2014 and 2.6 percent at the same period last year.

"Naay effect ang inflation especially sa daily wage earners, they will feel the impact," De Veyra said. (The daily wage earners will definitely feel the impact of the inflation.)

The PSA said the 4.1 percent inflation in April 2014 can be attributed to faster rise of prices of food, electricity and petroleum products.

The NEDA specialist also said the price hike may encourage consumers to limit their spending and look for cheaper alternatives to high-priced goods.

"Usually mahitabo na sa household and individual level," De Veyra said, advising people to become wise spenders to adjust on the rising prices. (FREEMAN)