The retail recovery is being hindered by high inflation, which is causing consumers to carefully consider their purchases, an industry group said.
Paul A. Santos, Philippine Retailers Association chairman, told reporters on the sidelines of the Economist Impact’s Global Anti-Illicit Trade Summit in Taguig City last week that consumers are keeping their spending in check.
“The biggest dampener to the economic recovery for the retail (sector) is inflation. We’re seeing a lot of consumers… realizing that stuff is more expensive than it used to be and are now prioritizing what to spend, how much to spend,” Mr. Santos said.
“Inflation puts a damper on the prospects of recovery and improvement in the retailing business,” he added.
The inflation rate slowed to 6.6% in April from 7.6% in March, the Philippine Statistics Authority said in a preliminary report. Inflation remained higher than the year-earlier 4.9% and above the government’s target range of 2% to 4%.
According to Mr. Santos, retailers are posting stronger sales following the reopening of the economy, but have yet to surpass pre-pandemic levels due to inflation.
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