TACLOBAN CITY – The Department of Trade and Industry (DTI) here in Leyte reported price increases of some commodities and items, citing increase of production cost as the main reason.

Morris Gicain, price monitoring officer, however, said that while there were price increases noted in some commodities and items, these were within the allowed level set by the DTI.

“We have set the allowable price increase of a particular commodity at 10 percent. Otherwise, any increase beyond the 10 percent will be subjected for some questioning or explanation,” Gicain told Leyte Samar daily Express.

However, in the case of canned goods manufactured by Nestle, an increase on its milk products increased by more than 10 percent.

“But we have formally notified us through a letter,” Gicain said, adding that a particular milk manufacture by Nestle increased by 16 percent lat month.

Other canned products, bath soap and some construction materials have also increased since last month as monitored by the DTI-Leyte.

“The reason cited by the manufacturers as well as by the traders for this price increase was due to the increase on the cost of production,” Gicain explained.

He particularly cited the case of the canned products which uses tin, an imported item, as one of the components on its production.

“This is part of the dynamics of economics. If there is an increase of the cost of production, expect for an increase of prices,” he said.

Meantime, Gicain told Express that as part of their effort to help the already much burden consumers, DTI continues its monitoring for any possible over pricing practices by some traders.

“We are doing our own share in helping our consumers who, at it is now, could barely survive because of the high prices of almost all commodities,” he said.

Gicain also said that they also appeal to all local chief executives to activate their respective price monitoring councils. This way, he added, any act of unreasonable price increase by traders could be check.

“We are not remiss in reminding our local chief executives to activate their respective price monitoring council. And we are glad that many of them have responded to this call of the DTI,” Gicain said.

The increase on the prices of different commodities is one of the effects cited by different groups who are against for the imposition of the Value Added Tax (VAT) that the administration of President Gloria Macapagal-Arroyo is pushing.

Melvin Anino, secretary-general of the militant group Bayan Muna – Eastern Visayas told Express that this 12 percent VAT proposed increase would “trigger widespread price increases affecting the basic commodities and services.”

The group is calling the government to scrap this tax measure describing it as another burden to the poor Filipinos.