Wage hike, weak peso force supermarket price adjustments
Supermarket operators have begun raising prices of certain consumer goods to offset higher labor costs, a weaker peso and increased borrowing expenses, according to the Philippine Amalgamated Supermarkets Association.
Association executive director Steven Cua said the adjustments primarily affect products outside the Department of Trade and Industry's (DTI) list of 190 monitored stock-keeping units (SKUs).
“We have no choice but to adjust prices because of the 9.5 percent increase in wages, and another round next year. We have to adjust our margins also,” Cua said in an interview.
He explained that supermarkets carry thousands of products, but only selected brands and variants of basic necessities and prime commodities are covered by the DTI's suggested retail price guidelines.
“There are thousands of items inside supermarkets. And only some brands of sardines, coffee, and other goods are under the regulation of the DTI. Not all brands are being monitored by the DTI. The DTI order is not a sweeping statement,” Cua said.
The association cited higher wages, fuel and raw material costs, the weaker peso and elevated interest rates as factors increasing operating expenses.
Under Wage Order No. NCR-28, the daily minimum wage for nonagricultural workers in Metro Manila increased by P60, from P695 to P755, effective 26 September 2026.
Cua said a supermarket employing about 50 workers would need substantial daily sales to cover payroll and other operating expenses.
The Bangko Sentral ng Pilipinas (BSP) also raised its benchmark interest rate by 50 basis points to 5.50 percent in November to address mounting inflationary pressures.
Palace: Price commitment covers selected goods
Malacañang maintained that prices of the 190 products covered by the DTI's monitoring list would remain unchanged until 31 December 2026.
Palace Press Officer Undersecretary Claire Castro said the commitment applies to selected essential goods, including certain canned products, bread, milk, instant noodles, bottled water and household supplies.
“Sa report ng DTI, nananatili ang presyo ng mga DTI-supervised basic necessities and prime commodities hanggang December 31, 2026. Kabilang dito ang 190 products na mahigpit na binabantayan ng DTI at nagsisilbing batayan ng mga tindahan at mamimili sa presyo ng bilihin. Kinumpirma rin ng ahensiya na hindi maapektuhan ang supply ng mga essential goods sa buong bansa,” Castro said.
She acknowledged that retailers could make pricing decisions on products outside the DTI's monitored list.
“So, kung may mga produkto na hindi naman sakop noong 190 lists ng DTI, nasa kanila po iyan. Kumbaga, nasa pagdedesisyon po nila iyan kung magtataas po sila ng presyo dahil marami naman pong brand na maaari rin namang mabili na nandoon pa po sa sakop ng 190 na listahan ng DTI,” she said.
Castro advised consumers to compare prices and consider products covered by the government's year-end price commitment.
The DTI has urged shoppers to consult its official suggested retail price bulletin to identify the brands and product variants included in the monitoring program.
The distinction comes as households face continued pressure from rising prices. Philippine inflation accelerated to 7.8 percent in October, while the BSP's higher policy rate has increased borrowing costs across the economy.