Bread prices could spike in the Philippines

Prices of bread may go up in the coming weeks if prices of flour and sugar, as well as other components of bread production, do not decline soon, reported Inquirer.net.

According to Gardenia Bakeries Philippines Inc. president Simplicio Umali Jr., a bread price hike is imminent as bakers may pass on to consumers soon the increase in flour and sugar prices from late 2010, unless President Aquino signs an order removing the tariff on wheat.

“We haven’t passed on to consumers the P20-a-bag increase in the price of flour last year. But the (Department of Trade and Industry) said President Benigno Aquino III would be signing soon an executive order removing the tariff on wheat. That should reduce flour prices by around P20 a bag,” he said.

While waiting for prices of major production inputs to go down, he said the price of the more affordable loaf bread “Pinoy Tasty”, manufactured by various local bakers including Gardenia, would also have to go up, likely by as much as P2 a loaf, he said.