NEWSFLASH

---

GOVERNMENT NIXES PRICE CONTROL

Manila, Oct 7, 1997 - Despite the peso's depreciation and surging interest rates, the government yesterday stood firm on its position against the imposition of price controls on basic commodities.

Trade Secretary Cesar Bautista told a press briefing that only the import-dependent items such as milk, laundry soap and detergent bars have shown price increases from 4.4 percent to six percent. The prices of the rest of the household commodities, like rice, pork, chicken, cooking oil, canned fish, sugar and coffee showed only minimal jumps, he said.

Bautista admitted that the peso's value against the dollar has fallen 30% since its de facto devaluation in July, but he claims that retail prices remain unaffected by the currency's depreciation.

---