DTI’s inflation-containment role seen limited to regulating prices of basic commodities

THE Department of Trade and Industry (DTI) said it can play only a limited role in easing inflation, with authority only over the prices of basic goods.

Undersecretary Amanda Marie F. Nograles said during the DTI’s budget briefing at the House of Representatives that the department is focusing on controlling price instability, including the suspension of road tolls for goods shipments and encouraging manufacturers to voluntarily hold the line on commodity prices.

“The DTI’s mandate covers basic necessities and prime commodities, which have an impact of only about 0.89% on consumer pricing,” she told legislators.

“Therefore, the DTI’s (authority) regarding the increase in the prices of goods reported in inflation is not very significant,” she added.

Inflation accelerated to 4.4% in July from 3.7% in June, according to the Philippine Statistics Authority.

July’s inflation reading represented a nine-month high, following the 4.9% posted in October 2023.

The DTI’s other main concern is monitoring the supply of goods throughout the country, Ms. Nograles said. “Based on reports from our (price) monitors, the supply of goods in Luzon, the Visayas, and Mindanao is adequate.”

Party-list Rep. Arlene D. Brosas said at the hearing that the government should look into boosting the budget of a program meant to provide support to small businesses, which could lead to the creation of more jobs.

The proposed MSME (micro, small and medium enterprises) development fund for next year was slashed 71% to P780 million, against the DTI’s request of P2.47 billion, according to Acting Trade Secretary Cristina A. Roque.

“Considering that (MSMEs are) 99.5% of the business sector, the budget is not enough,” Mr. Roque said in response to a query on the adequacy of the program’s funding.

“We should actually get more so we can push this large part of the business sector,” she added.

Congress should restore the budget to “some of the more important priority programs” of DTI to support further economic development, Cagayan de Oro Rep. Rufus B. Rodriguez said, after the government cut P12 billion from the DTI’s budget proposal for next year.

“Only P6 billion (was retained), P12 billion was scratched” he said.

“We cannot allow that in Congress because we are here to support trade and industry, an important cog in the development of our country,” he added. — Kenneth Christiane L. Basilio