Bakers are set to announce a cut in bread and pandesal prices next week, as flour prices continue to decrease. 

The proposed price cuts would reduce the price of pandesal by P0.50 to P1.50 per piece.  Bread prices will still be negotiated.

Simplicio Umali, president of the Philippine Baking Industry Group confirmed this plan in a phone interview, saying bakers will be meeting on Monday next week to decide the extent of the price adjustments.

Bakers will also be introducing new variants of bread and pandesal to the market within the week.  Umali says that this is because flour prices continue to go down from the peak price of about P900 per sack to the prevailing price of P780-820 per sack today.

"We think prices should still go down further to P600 before we can make more substantial cuts, but for now, our econo-loaves and budget-sized pandesal will be our response to the consumers' needs for lower-priced bread," Umali says.

He says bread producers will be releasing econo-loaves, or thinner bread variants.  Pandesal makers on the other hand, will be offering a reduced-sized pandesal from the usual 25 to 30g to a 20g pandesal.

"We will still have the regular-sized variants in the markets.  What we are doing is offering choices to the consumer to the extent that we can right now, until flour prices go down further," he says.

Earlier, Philippine Federation of Bakers Association Inc. President Chito Chavez announced on radio dzMM that pandesal prices would go down by P0.50 per piece starting next week. 

Bakers are set to meet with associations nationwide and the Department of Trade and Industry, and make a formal anouncement on Tuesday or Wednesday next week.