Price hikes not allowed in areas devastated by 'Rolly'
MANILA, Philippines — Price freezes will be enforced in areas under state of calamity after the onslaught of Typhoon Rolly, the Trade department said Monday.
Already, Cavite province implemented price controls on basic commodities after declaring a state of calamity on Sunday, Trade Secretary Ramon Lopez said in a Viber message. Under Republic Act 7581, prices of essentials are automatically frozen at their prevailing level for not more than 60 days in an area under state of calamity.
"(We) will check if other affected provinces (and) LGUs (local government units) will declare state of calamity and we shall implement price freeze too," Lopez said.
Cavite followed the lead of provinces of Albay, Batangas, Oriental Mindoro and Marinduque which imposed price caps on consumer goods since last week after Typhoon Quinta which preceded "Rolly" left their crops in their areas damaged, constricting food supplies which if not controlled can prompt a price spike.
Internationally named "Goni," Rolly was a "super typhoon" packing catastrophic winds when it made landfall on Bicol Region on Sunday, knocking down power lines and setting off deadly flooding and landslides that buried the homes of residents who fled to evacuation centers.
The typhoon — the strongest recorded this year — had since weakened and skirted Metro Manila before heading to the West Philippine Sea on Sunday evening. Official reports as of Monday morning put the number of casualties at 10.
The damage caused by Rolly on crops is expected to cause serious food supply shock which could fan inflation this month. That already potentially happened last month when Tropical Storm Quinta preceding "Rolly" battered Northern Luzon. The central bank said last week inflation likely settled between 1.9-2.7% in October from 2.3% in September with the higher end likely hit due to food supply constraints.
Pric pressures from tight supplies would have been counterbalanced by price controls during calamities, at least for the time being. BSP Governor Benjamin Diokno has not responded to request for comment when asked for potential inflation repercussions of the typhoon.
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