DTI: No price hikes on basic necessities until Dec. 31
By Saghir Hussain ·
The Philippines has frozen prices on 190 basic goods until New Year's Eve — a move that puts UK ministers' reluctance to intervene in food inflation into sharp relief.
Manila's Department of Trade and Industry (DTI) confirmed yesterday that suggested retail prices (SRPs) for monitored necessities — from canned sardines to instant coffee — will hold until 31 December, covering the Undas holiday and the Christmas rush. The order carries the weight of law; retailers who breach it face fines and potential closure.
"We are ensuring that the consuming public can celebrate the holidays without the burden of price manipulation," Trade Secretary Cristina Roque told the Philippine Daily Inquirer. The DTI's price monitoring teams have been deployed to wet markets and supermarkets nationwide.
Manila's price freeze vs Westminster's watch-and-wait
The contrast with Britain's approach is stark. While the UK government relies on the Competition and Markets Authority's (CMA) grocery code review and voluntary "fair dealing" pledges from supermarkets, Manila has simply capped the shelf price. No consultations. No phase-in periods. No reliance on retailer goodwill.
UK food inflation has eased from its 2023 peak, but the Office for National Statistics still puts annual grocery inflation above 2%. A loaf of own-brand bread that cost 45p in 2021 now retails at 75p in most UK discounters. The CMA's interim report last year found "weak competition" in some categories — but stopped short of recommending price controls.
Small Filipino retailers, meanwhile, warn the freeze squeezes margins already thinned by fuel costs. "We absorb the increase or we close," said a sari-sari store owner in Quezon City, speaking to local media. The DTI insists the SRPs reflect current landed costs and allow "reasonable" mark-ups.
Small traders caught in the crossfire
Back in the UK, the British Independent Retailers Association (Bira) has long argued that voluntary codes favour the multiples. "When Tesco or Sainsbury's negotiate, they set the market," Bira's chief executive told The Grocer last month. "Corner shops take the hit."
The Philippine flower market offers a parallel. At Manila's Dangwa Market, vendors told the Inquirer that bundles currently selling at ₱450–₱1,500 (£6–£20) will jump by Wednesday as Undas demand peaks. The DTI does not control flowers — they're not on the 190-item list. Seasonal spikes, the vendors say, are simply "part of the trade."
The tech platform factor
Neither Manila nor London has cracked how digital platforms distort price signals. In the Philippines, e-commerce apps add delivery fees that push effective prices above the SRP. In the UK, dynamic pricing algorithms on grocery apps mean the same jar of coffee costs different amounts to different shoppers at different hours.
The CMA is examining "personalised pricing" but has yet to propose remedies. The DTI, for its part, has ordered online sellers to display SRPs prominently — a rule enforced by spot-checks on Lazada and Shopee listings.
Britain won't adopt price caps. The political cost of "state planning" rhetoric is too high. But as households in Blackpool and Manila alike count the cost of a festive shop, the Philippine model raises an uncomfortable question: when voluntary codes fail the high street, what exactly is the alternative?