DTI monitoring ‘shrinkflation’ in prime commodities

MANILA, Philippines — The Department of Trade and Industry (DTI) said it continues to monitor shrinkflation changes implemented by manufacturers, noting that these need to be evaluated if covered under the suggested retail price (SRP) bulletin for basic necessities and prime commodities (BNPCs).

In a radio interview with dzXL yesterday, Trade Assistant Secretary Amanda Nograles explained that shrinkflation happens when manufacturers change the weight or quality of the product while retaining its price.

She acknowledged that the moves of manufacturers to make changes in their products are a business decision that the agency cannot stop.

“But we are monitoring this because when they change the weight or the quality of the time, but the price is the same and that item is on the SRP bulletin for BNPCs, it comes out that it is a price adjustment,” she said in Filipino.

“So that needs to be evaluated by the DTI,” she said, adding that these manufacturers need to submit supporting documents to the DTI so that it can assess this.

Meanwhile, Nograles explained that it is illegal for manufacturers to make changes in weight of products that are not reflected in the label or packaging.

As an example, she cited that a product’s weight was lessened to 45 grams, however the 50 grams label on the packaging remained – this is misleading to consumers and is illegal even for products not under BNPCs.

Under Republic Act 7581 or the Price Act, as amended, the DTI is mandated to issue suggested retail price (SRP) bulletin for BNPCs under its jurisdiction for the information and guidance of manufacturers, distributors and consumers.

The high retail price of rice is expected to persist in 2024 amid the spike in the cost of the grains despite the end of harvest season, a ranking official of the Department of Agriculture (DA) admitted on Thursday.

In a radio interview, Agriculture Assistant Secretary and spokesperson Arnel de Mesa gave assurance of enough supply of rice with the expected arrival of 495,000 metric tons of imported staple food from Taiwan and India until February 2024.

“That is the hope of all our countrymen, for the retail price of rice to go down but let us see because