Weak peso to boost Christmas spending

CEBU, Philippines — The high dollar exchange against the Philippine peso is expected to bolster Christmas spending despite rising prices of goods.

“We are projecting that people will still do the Christmas shopping, specifically the OFW beneficiaries as their money is more valuable now,” said Philippine Retailers Association (PRA-Cebu) president Robert Go.

According to Go, the over P50 to a dollar at this time is good news for OFW beneficiaries and their Christmas shopping will not be affected by the higher inflation.

It is not as bad as expected, Go said as OFWs are still sending money to their families, and their money’s worth is more expensive at this time.

Crisis or not, Go said people will still spend for Christmas, although some may opt to tighten the belts in buying lesser cost products or the unbranded items.

But for huge families receiving monthly allotment from abroad, Christmas shopping remains a go.

In fact, Go expects that premium items will make good performance in terms of sales during the Christmas shopping rush.

On the other hand, retailers have already noted the change of consumer’s buying pattern in the recent weeks as the Philippine economy is currently battered with high inflation rate.

Meanwhile, the Department of Trade and Industry (DTI) has warned that prices of noche buena (Christmas Eve meal) items are expected to be higher by at least three to eight percent this coming holiday season compared to last year.

According to DTI, manufacturers of noche buena products have informed the agency about the price increases, but the department will study whether the hikes are warranted.

It said an eight percent uptick on prices seems too high.