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Happy ‘Kamping’

PHOTO BY DYLAN AFUANG

Enjoying the outdoors with Jeep Kamp and the new Wrangler Sport

By Dylan Afuang

THICK TREES abound in the sprawl of the resort that offers a near-panoramic view of Caliraya Lake in Laguna, which glimmers from the sunlight. The harsh light and summer heat barely pierce through the shade, hardly disrupting the breeze of cool and fresh air within it.

This idyllic lakeside resort was the venue of Jeep Kamp 2024, an overnight camping trip during which motoring journalists and content creators, through the Jeep Wrangler 4-Door Sport, experienced being a local owner of an SUV made by the American brand.

Inchcape Philippines, distributor of Chrysler, Dodge, Jeep, and Ram Trucks in the country, staged the journey to introduce the newly launched, P4.79-million Sport model. This carries the styling and equipment updates the car maker brought to its legacy off-road SUV model.

Event participants hustled the rugged Wrangler Sport along the national highways and twisties of Rizal and Laguna towns. At their destination, they were given lessons on setting up tents, the option of staying at the resort’s cottages, a chance to explore the Cavinti Cave at the nearby Sierra Madre mountain, and feast on barbecue while surrounded by nature.

Before the trip to Kaliraya SurfKamp began at the umbrella brands’ showroom in Greenhills, San Juan, Inchcape Philippines Assistant Vice-President for Chrysler, Dodge, Jeep and Ram Valerie Yu-Leong underscored: “The Jeep Kamp is our way of rediscovering the untamed spirit of adventure, of redefining what it means to be a freedom-loving Jeep enthusiast.”

A release from the company reiterated, “For Jeep owners who would like to experience Jeep Kamp themselves, simply give Kaliraya SurfKamp a call and ask about the Jeep Kamp package.”

The Wrangler Sport, meanwhile, now serves as the model’s entry-level variant for the Philippine market. According to Inchcape Product Planning Manager Amir Corpus, the Sport, with its blend of convenience and off-road features, is a Wrangler suited for both daily-driving and weekend adventures.

The Sport wears the nameplate’s “JL” generation styling updates. Chief among these are black details on the brand-signature seven-slot grille and blacked-out badges. This particular model also rolls on gray 17-inch alloys wrapped in all-terrain tires.

Further identifying the externally updated SUV are an integrated window antenna and black hardtop panels — which, like the vehicle’s doors, can be removed. These removable panels give the SUV’s occupants a full open-air experience and are a hallmark Wrangler feature.

The first 50 Wrangler Sport customers here in the Philippines can swap their units’ conventional doors with window-less “half-door” options, Inchcape Philippines announced.

Inside, a new 12.5-inch infotainment screen operating with the brand’s Uconnect 5 system is the notable upgrade. The system promises faster response speeds, enables wireless Apple CarPlay and wired Android Auto, and courses audio through an Alpine nine-speaker setup.

Powering the Wrangler Sport is a two-liter, turbo gasoline unit that dispatches 268hp and 400Nm of torque to a four-wheel drive (4WD) system through an eight-speed automatic transmission.

With its Selec-Trac 4WD system, the Wrangler boasts superior capabilities for various terrain for which Jeep is renowned. The system includes locking differentials on its front and rear axles, and skid plates protecting its transmission, transfer case, and fuel tank from rough surfaces.

New safety features for the nameplate, as seen in the Sport model, include adaptive cruise control and side curtain air bags.

Heart Evangelista: Avon’s latest face

DIRECT-selling company Avon released a new commercial with actress, political spouse, and international socialite Heart Evangelista (née Love Marie Ongpauco; a member of the Ongpauco restaurateur family which popularized crispy pata). In the ad, Ms. Evangelista is having fun in a bra (she’s the new ambassador for Avon’s line of intimate apparel) with two other women with more “realistic” bodies.

The commercial was launched via a fashion show on May 2 in a mini mall in Recto, Manila (can’t get any more real than that).

The fashion show featured an all-women ensemble of singers, dancers, and “real-women models.” Headlining the show were performers Kiana Valenciano, Deny, Peaceful Gemini, and spoken word artist Beverly Cumla. Ms. Evangelista went onstage wearing a white sheer top and a skirt with a white lobster by Schiaparelli*. The sheer top allowed her own Avon bra to peek ever so slightly.

In a group interview backstage, she praised the bra: “Only a woman would know. Hindi siya patusok (it doesn’t stab). It’s very becoming.” The bra is presumably from Avon’s new 360° Comfort System, made of a soft, breathable, and quick-dry fabric that carries away sweat from the skin, as well as being high-stretch (allowing freedom of movement). In a statement, she said, “This is my first undergarment endorsement, and I am proud that it is with Avon, a brand that celebrates all kinds of bodies and reminds women that they can achieve anything they set their mind to.”

“Avon isn’t just about the shape. It’s about your personality,” Ms. Evangelista said backstage.

Still, in a campaign that praises diversity in shapes and sizes, Ms. Evangelista’s on-trend thinness sticks out. Addressing this, she said, “Well, I’m very petite in the world of fashion. We are different cuts. I feel like it’s just about embracing your imperfections and being comfortable with that. Once you do that, that’s when you’ll shine. I hope that alone can make a difference for people, to kind of boost their confidence.

“It’s about owning your truth, embracing your flaws, believing in yourself, being kind to yourself,” she added. “Aanhin mo ang pera at kasikatan kung hindi ka naman masaya sa totoong buhay (what will you do with fame and fortune if you’re not happy in real life)?”

Niqui Leong, Brand Manager of Intimate Apparel for Avon Philippines told BusinessWorld about the body-inclusive campaign. “We’ve been trying to build on inclusivity and diversity for so long. The show is just a commitment to that. We’re intensifying the ages, the body types, the sizes that we feature.”

Inclusivity in business isn’t just a step towards political correctness. Not everyone is built like an international socialite, so having a product line that can cater to more people can be a step towards practicality (and profit). Asked if inclusivity translates to profitability, Ms. Leong said, “I’m happy to tell you that it does. We’ve expanded our size range, and we’ve been seeing good performance there.

“I think more women want more sizes offered to them versus the usual sizes,” she said. — JLG

 

*A tribute to founder Elsa Schiaparelli’s 1937 collaboration with Surrealist Salvador Dali which resulted in a dress painted by the artist with a lobster; it was worn by Wallis Simpson prior to her marriage to the UK’s King Edward VIII.

Globe reports spike in blocked malicious sites in Q1

GLOBE Telecom, Inc. said it has blocked more than 1,000 malicious sites in the first quarter (Q1).

“Illegal online gambling can have devastating financial and social consequences, fueling problematic gambling behavior and exposing users to potential fraud, malware and cybercrime,” Globe Chief Information Officer Anton Reynaldo M. Bonifacio said in a statement on Sunday.

The company said that it filtered a total of 1,345 domain names involved in illegal online gambling sites in the first quarter, marking a significant increase from 126 sites in the same period last year.

The company has invested a total of $2.7 million to boost its content filtering infrastructure system equipped with detecting and restricting malicious contents including piracy.

Globe said it has implemented a network-blocking measure and content filtering systems to block illegal gambling sites.

The government has warned the public against online gambling sites due to their association with frauds and scams, particularly amid the rising numbers of cyberattacks.

“We have an ethical obligation to make the internet safer and are continuing our relentless push to identify and prevent access to these unlawful sites on our network,” he said.

At the stock exchange on Friday, shares in the company closed P23 or 1.32% higher at P1,760 each. — Ashley Erika O. Jose

Yellen cautions vs FX intervention after yen surge

US Treasury Secretary Janet Yellen — REUTERS

US TREASURY Secretary Janet Yellen acknowledged sharp moves in the value of the yen this week, even as she declined to say whether Japan had intervened to support the currency.

“I’m not going to comment on whether they did or didn’t intervene,” Ms. Yellen told reporters Saturday following a speech in Mesa, Arizona. “I think that that’s a rumor.”

Still, she said the yen “did move quite a bit in a relatively short period of time,” adding, “we would expect these interventions to be rare and consultation to take place.”

Japanese authorities appeared to enter the market to support the yen on two occasions in the past week. One came after the yen weakened beyond 160 to the dollar for the first time in 34 years, followed by another after Federal Reserve Chair Jerome H. Powell said a hike was unlikely to be the US central bank’s next interest rate move.

Fed hikes weaken the yen relative to the dollar, so Mr. Powell’s comments made it easier for yen purchases to move the currency in the other direction.

Bloomberg analysis of the Bank of Japan’s current account data suggests Japan may have spent almost $60 billion on the actions. Near the end of the week, Finance Minister Shunichi Suzuki declined to confirm that Japan had intervened.

Ms. Yellen’s statements on Japanese intervention over the past two years have varied. She regularly points to a long-standing agreement among Group of Seven countries to allow the market to determine exchange rates. She has also said intervention can be justified only if it’s aimed at smoothing out volatility, but not to influence exchange rates. She repeated those points Saturday.

When Japan has previously intervened to strengthen the yen, however, she has avoided criticizing the moves.

Ms. Yellen was in the battleground state of Arizona to speak about the Biden administration’s economic policies. She also spoke Friday in Sedona to say that a turn away from democracy in the US would undermine the country’s economic strength. — Bloomberg News

Belle Corporation announces 2024 Annual Shareholders’ Meeting

Belle Corporation is pleased to announce the conduct of its Annual Shareholders’ Meeting in hybrid format.

To all Shareholders:

The annual meeting of the shareholders of Belle Corporation (the “Company”) will be held on May 31, 2024, Friday at 10:00 a.m. The meeting will be in hybrid format wherein the Chairman of the Meeting, the Secretary of the Meeting, the members of the Board of Directors, and other Officers will be attending in person at the Lanson Place Mall of Asia, Block 12, Palm Coast Avenue corner Seaside Boulevard, Mall of Asia Complex, Pasay City; the shareholders will be participating by remote communication via Zoom Webinar. The voting shall be conducted in absentia through the Company’s secure online voting facility.

Agenda:

  1. Call to Order
  2. Proof of Notice of Meeting and Quorum
  3. Approval of the Minutes of the Annual Meeting of Shareholders held on April 24, 2023
  4. Approval of 2023 Operations and Results
  5. Ratification of all Acts of the Board of Directors and Management during their term of office
  6. Amendment of Articles of Incorporation to reduce membership of the Board of Directors from nine (9) to seven (7)
  7. Election of Directors for 2024-2025
  8. Appointment of External Auditors
  9. Other Matters
  10. Adjournment

Please refer to Annex A for a brief explanation of each agenda item for approval.

The Board of Directors has fixed the end of trading hours of the Philippine Stock Exchange, Inc. on April 15, 2024 as the record date for the determination of shareholders entitled to the notice of, participation via remote communication, and voting in absentia at such meeting, and any adjournment thereof.

The conduct of the meeting will be streamed live, and shareholders may attend the meeting by registering via asmregister.bellecorp.com and submitting the supporting documents listed there until 12:00 noon of May 29, 2024, Wednesday. All information submitted shall be verified and validated by the Corporate Secretary.

Stockholders who wish to cast votes through a proxy may accomplish the corresponding proxy form (which need not be notarized) and submit the same on or before May 22, 2024. Scanned forms may be sent electronically through corsec@bellecorp.com, while paper copies shall be sent to the office of the Corporate Secretary at 2704 East Tower, Philippine Stock Exchange Centre, Exchange Road, Ortigas Center, Pasig City.

Stockholders who successfully registered can cast their votes in absentia through the Company’s secure online voting facility for this meeting. In order to participate remotely, they will also be provided with access to the meeting that will be held virtually. The “Guidelines for Participation via Remote Communication and Voting in Absentia as appended to the Information Statement labeled as “Schedule A” together with the Information Statement, Annual Report on SEC Form 17-A (once available) and other pertinent materials for the Annual Stockholders’ Meeting are posted in the Company’s website will be posted in the Company’s website (bellecorp.com/ASM2024) and PSE Edge.

Pasig City, April 25, 2024

(SGD.)
JASON C. NALUPTA
Corporate Secretary

 

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World food prices up in April for 2nd month, says UN agency

REUTERS

PARIS — The United Nations (UN) food agency’s world price index rose for a second consecutive month in April as higher meat prices and small increases in vegetable oils and cereals outweighed declines in sugar and dairy products.

The Food and Agriculture Organization’s (FAO) price index, which tracks the most globally traded food commodities, averaged 119.1 points in April, up from a revised 118.8 points for March, the agency said on Friday.

The FAO’s April reading was nonetheless 7.4% below the level a year earlier. The indicator hit a three-year low in February as food prices continued to move back from a record peak in March 2022 at the start of Russia’s full-scale invasion of fellow crop exporter Ukraine.

In April, meat showed the strongest gain in prices, rising 1.6% from the prior month. Higher prices for poultry, beef and sheep meat offset a small fall for pork, which was affected by slow demand in Western Europe and from leading importers, especially China, the FAO said.

The FAO’s cereal index inched up to end a three-month decline, supported by stronger export prices for maize (corn). Vegetable oil prices also ticked higher, extending previous gains to reach a 13-month high due to strength in sunflower and rapeseed oil.

The sugar index dropped sharply, shedding 4.4% from March to stand 14.7% below its year-earlier level amid improving global supply prospects.

Dairy prices edged down, ending a run of six consecutive monthly gains.

In separate cereal supply and demand data, the FAO nudged up its estimate of world cereal production in 2023/24 to 2.846 billion metric tons from 2.841 billion projected last month, up 1.2% from the previous year, notably due to updated figures for Myanmar and Pakistan.

For upcoming crops, the agency lowered its forecast for 2024 global wheat output to 791 million tons from 796 million last month, reflecting a larger drop in wheat planting in the European Union than previously expected.

The revised 2024 wheat output outlook was nonetheless about 0.5% above the previous year’s level. — Reuters

Buffett and Berkshire’s entertainment value is waning

WARREN BUFFETT, Chairman and CEO of Berkshire Hathaway, Inc. — FORTUNE LIVE MEDIA

BERKSHIRE HATHAWAY, Inc. is a gigantic conglomerate that owns a bunch of boring businesses outright and has big stakes in a few arguably less-boring ones. That its annual shareholder meetings have nonetheless become pop-culture spectacles dubbed “Woodstock for Capitalists” can be chalked up in large part to the folksy charm of Chairman and Chief Executive Officer Warren Buffett and his long-running buddy act with tart-tongued Vice-Chairman Charles Munger.

That buddy act technically ended with Munger’s death in late November — at “99.9 years,” Buffett said, as Munger had been due to turn 100 on New Year’s Day — but it was still a chief theme of Saturday’s annual meeting in Omaha, Nebraska. The ceremonies began with a movie about the Munger-Buffett partnership, which unlike past such films was broadcast to viewers outside the CHI Health Center Arena as well as those within. And during the long Q&A that followed (at least the morning session; I’m writing this before the start of the afternoon activities), Buffett’s occasional invocations of Munger provided most of the bright spots.

Apart from that, it was hard work: long disquisitions on the workings of utilities, real estate, and other industries by vice-chairman of non-insurance operations and Buffett heir apparent Greg Abel; shorter ones on a variety of insurance topics by vice-chairman of insurance operations Ajit Jain; and rambling remarks on management style, climate change, overseas investing, taxes, and other topics by the gravelly voiced Buffett that were at times profound and at times entertaining but suffered from the absence of Munger’s pithy interruptions.

Subtract Buffett, and you have an event that I doubt many people will want to travel to Omaha for or watch on CNBC, and the 93-year-old made clear that he didn’t think he had many more annual meetings to go.  “I feel fine,” he said, “but I know a little about actuarial tables, and I shouldn’t be taking on any four-year employment contracts.”

There is, of course, another thing beyond the charms of Buffett and Munger that gave Berkshire shareholders such strong feelings of attachment to the company. Investing in Berkshire over decades made many of them very rich — allowing them to do things like donate $1 billion to the Albert Einstein College of Medicine in New York to make it tuition-free, which Ruth Gottesman, whose late husband was an early Berkshire investor, did in February and was applauded for at the meeting.

But in his most recent letter to shareholders, released in February, Buffett made clear that he didn’t think such stories would be part of the company’s future, either. “All in all, we have no possibility of eye-popping performance,” he wrote — Berkshire has simply become too big. The company is sitting on a cash pile that Buffett expects to reach $200 billion by the end of this quarter, but he said on Saturday that he and his managers don’t see an opportunity to deploy it.

So what is the company good for? From the shareholder letter again: “Berkshire should do a bit better than the average American corporation and, more important, should also operate with materially less risk of permanent loss of capital.” That’s not nothing! It’s just also not really deserving of a cult following. The days of Woodstock for Capitalists are clearly numbered. Does anybody have a replacement in the works?

BLOOMBERG OPINION

Summer Test Drive Festival features electrified, ICE vehicles

MORE PEOPLE are enjoying the benefits of driving vehicles with hybrid engines. Aside from spending less on fuel, owners of hybrid vehicles are taking advantage of being exempted from the coding scheme in Metro Manila. Meanwhile, full-electric vehicles are offering similar benefits, aside from manufacturer claims of lower operational and maintenance costs.

Still, many remain wary about shifting to electrified options because they are not quite sure about how these drive in day-to-day situations. Those who are curious about how to operate hybrid and battery-powered vehicles can test-drive and compare them with ICE (internal combustion engine) vehicles at the Auto Focus Summer Test Drive Festival, which makes a return to the SM Mall of Asia Open Grounds in Pasay City.

This year, 17 automotive companies — many of them offering hybrid vehicles as well as full electrics — are participating in the festival, which happens from May 9 to 12, 11 a.m. to 9 p.m. These include BYD Philippines, Changan Auto Philippines, DFSK Philippines, Ford Philippines, GAC Motor Philippines, Geely Philippines, GWM Philippines, Honda Cars Philippines, Hyundai Motor Philippines, Isuzu Philippines Corp., Jetour Auto Philippines, Kia Philippines, MG Philippines, Mitsubishi Motors Philippines, Nissan Philippines, Suzuki Philippines, and Toyota Motor Philippines.

Entrance and test drives are free.

Style (05/06/24)

Wedding Fair at The Peninsula Manila

THE PENINSULA Manila celebrates its biggest wedding fair yet on the 10th anniversary of the event, done in cooperation with Christine Ong-Te Events (COTE), the Manila Fashion Festival (MFF), and designer Michael Leyva. This will take place on May 11 and 12, Saturday and Sunday, from 10 a.m. to 7 p.m. “Timeless Celebrations: Weddings at The Peninsula and More 2024” promises to provide couples with all the creative motivation they’ll need, but also (hopefully) get a lot done in two days while perusing and choosing from a range of wedding and celebratory essentials, each one chosen for their signature style and savoir faire — from bridal finery to tabletop decorations, delicious cakes and blooming bouquets, to honeymoon and holiday destinations, photographers, events hosts, and many more. Many exhibitors will be offering giveaways, but the biggest prizes will be coming from The Peninsula Manila where lucky guests will have the chance to win a three-day/two-night stay for two with breakfast at The Peninsula Bangkok and The Peninsula Tokyo, along with other prizes. Michael Leyva will show off his bridal fashions on Saturday, May 11, at The Upper Lobby, while the MFF will launch the MFF Bridal Collection 2024 on Sunday, May 12, at The Lobby. The parade of bridal wear from Aisle by ACMS and  Filipino designers Studio Ceremonie, Rei Escario, Jor-el Espina, and Banggo Niu, will be an ode to romance and luxurious textures. For inquiries about “Timeless Celebrations: Weddings at The Peninsula and More 2024,” call 887-2888, extension 6579 and 6573 (Wedding Sales), e-mail jonnayeh@peninsula.com or marizsison@peninsula.com or visit peninsula.com.

Ternocon calls for entries

FOR THE past several years, the Cultural Center of the Philippines (CCP) and Bench/Suyen Corp. have partnered with a common goal to popularize the Philippine dress through the TernoCon, a national convention and competition for Filipino designers. This year, the competition officially began with a two-day lecture series via Zoom open to all aspiring Filipino designers who want to join the competition. For TernoCon, designers are expected to create a three-piece collection, consisting of a formal terno with pañuelo, a formal Balintawak with an alampay and tapis, and a formal Kimona (a camisa with butterfly sleeves) with an alampay and a patadyong (a tube-like wraparound skirt). For this year’s edition, TernoCon 2025 will draw inspiration from 20th-century Philippine visual arts. Participants have to honor the intricate movements, perspectives, and principles seen in Philippine paintings, architecture, and sculptures. The competition will culminate in a cultural show, slated on Jan. 25, 2025, where the 12 finalists will present their terno collections. TernoCon 2023’s winning designer Yssa Inumerable, along with this season’s mentors, will also showcase their special collections then. The deadline for submission of designs is May 10. For the full mechanics, check out the official CCP social media accounts on Facebook or visit the CCP website (www.culturalcenter.gov.ph)

Criselda explores tropical surrealism

BEST known as the brand of choice for society matrons, Criselda dives into new territory this year, featuring a line inspired by tropical surrealism. This Spring/Summer 2024 features contemporary, minimalist silhouettes in lush shades of blues and feminine splashes of apricot and lilac. The prints evoke the sensation of viewing images through a kaleidoscope. Earthly elements such as florals and geometric textures take on hyperreal, synthetic, pixelated proportions. The shapes include flowing caftans, billowy sleeves, and maxi dresses which offer elegant dressing options from day to night. Standout pieces include bright, abstract print dresses in flattering cuts, flowy silk tops paired with luxe maxi skirts, and elegant ensembles in neutrals, black, fuchsia and bright green. All Criselda’s pieces are made from soft, light, and breezy fabrics and breathable materials such as cotton, rayon, and charmeuse for daytime, and organza, chiffon, and silk for the evening. The brand’s signature Mikado and Gazar fabrics are present throughout this season’s offering, creating that dramatic Criselda statement that is the signature of every one of the brand’s collections. Criselda is available at Rustan’s.

Lady Rustan does classic elegance for spring

LADY RUSTAN — Rustan’s in-house private label — is launching its newest collection featuring a modern interpretation of its classic styles. This summer’s collection showcases details such as bubble hems, pleats, and smocking. Its color palette includes serene neutrals like stone, sand, and whites, along with mineral shades of greens, powdery lilacs, blues, and oranges. Lady Rustan’s SS24 collection is available at Rustan’s Makati, Shangri-La, Alabang, Cebu, and Gateway.

Yields on gov’t debt mixed after less hawkish Fed

YIELDS on government securities were mixed last week after less hawkish comments from the US Federal Reserve.

The yields, which move opposite to prices, fell by 1.43 basis points (bps) on average week on week, according to data from the PHP Bloomberg Valuation Service Reference Rates as of May 3 posted on the Philippine Dealing System website.

Rates at the short end were mixed, with yields on the 91- and 182-day Treasury bills (T-bills) going down by 4.41 bps and 8.92 bps 5.8577% and 5.9309%. The 364-day debt rose by 1.34 bps to 6.0642%.

At the belly of the curve, the rates of the two-, three- and seven-year Treasury bonds went up by 6.76 bps, 2.74 bps and 1.03 bps to 6.527%, 6.6021% and 6.9369%. The rates of the four- and five- year T-bonds shed 0.26 bp and 1.6 bps to 6.6744% and 6.7590%.

The 10- year bonds rose by 4.21 bps to 6.9887%, while the rates of the 20- and 25-year bonds fell by 8.36 bps and 8.21 bps to 6.9831% and 6.9837%.

Volume jumped to P17.38 billion from P11 billion on April 26. Financial markets were closed on May 1 for Labor Day.

“The holiday-shortened week saw yields still impacted by global bond market movements,” Nicholas Antonio T. Mapa, senior economist at ING Bank N.V. Manila Branch, said in an e-mail. “Investors were focused on two developments: the [Federal Open Market Committee] meeting and the US job report on Friday.”

The Fed kept its policy rates steady at 5.25%-5.5% on May 1, holding off rate cuts until “greater confidence” that inflation will continue to fall, Reuters reported.

Mr. Mapa said the Fed’s stance was less hawkish than investors anticipated, leading to a dip in bond yields.

“Weak demand at recent auctions further pressured local yields upwards,” the market seems to be pricing in a scenario where concerns about growth and inflation will prevent the Fed from cutting rates this year,” Robert Dan J. Roces, chief economist at Security Bank Corp., said in an e-mail.

The government partially awarded reissued 20-year T-bonds on Tuesday, raising P27.476 billion.

Global developments would continue to influence sentiment this week, Mr. Mapa said. “We do get some important data reports locally as well, with gross domestic product and inflation out in the coming days, which could add additional color to this week’s trading,” he added.

Inflation probably quickened to 4.1% in April, according to a median estimate of 16 analysts in a BusinessWorld poll last week. The economy likely grew by 5.9% last quarter, according to a median estimate of 20 economists in a separate BusinessWorld poll.

The local statistics agency will report April inflation and first-quarter GDP data on May 7 and 9. — Karis Kasarinlan Paolo D. Mendoza

South Korea to slap fines on food manufacturers for ‘shrinkflation’

REUTERS

SEOUL — South Korea’s antitrust regulator said food makers and suppliers will be required to notify shoppers if they reduce the size of their products or face fines of up to 10 million won ($7,300).

The Fair Trade Commission (FTC) said it has designated the practice of some businesses to cut product portions while keeping the price the same, or so-called shrinkflation, as an unfair transaction subject to penalties.

Most processed food makers and manufacturers of household supplies such as toilet paper, shampoo and detergents will have to display labels for three months if they downsize their products in a way that prompts the unit price to go up.

The rule will take effect in August after a three-month grace period, and violators will be fined 5 million won for their first offense and 10 million won for a second.

“The change was aimed at preventing a situation where companies reduce the size, standard, weight or quantity of their products without sufficient notice so that consumers unknowingly bear a substantial price increase,” the FTC said in a statement.

Shrinkflation has become a headache for consumers and governments around the world as households grapple with dwindling purchasing power in the face of soaring inflation over the past few years, despite some recent signs of easing price pressures.

Surging food prices and living costs were a major issue in the run up to last month’s parliamentary elections in which President Yoon Suk Yeol’s ruling party suffered a stinging defeat.

Mr. Yoon’s government has taken various steps in a bid to tame price rises, including cutting tariffs on food imports and putting pressure on companies to limit price hikes. — Reuters

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