THE government cannot dictate the price of food and goods that are not controlled items, the Dewan Rakyat was told yesterday.

As such, Domestic Trade and Consumer Affairs Minister Datuk Shahrir Abdul Samad said his ministry had no power to stop restaurants from increasing prices.

It can only advise them to join the price reduction campaign which was launched recently.

"This campaign is more effective at hypermarkets where there is high purchasing power. However, the prices of food depends on restaurant owners, traders and hawkers," Shahrir said in reply to a question by Hamim Samuri (BN-Ledang).

Shahrir said the price of food sold at restaurants was not determined solely by the cost of fuel, but also took into account other factors such as operation and maintenance costs.
"The government cannot control the price or supply of goods that are not categorised as price-controlled items."

Earlier, he said the 2,000 graduates who were appointed as price monitors were keeping watch on the price of goods at 96 locations that included wet markets, supermarkets and grocery stores.

"They monitor eight types of essential items and 350 types of other goods which include ready-to-cook products and over 200 grocery items."

They will then file reports, including daily price reports for the eight essential items, weekly price reports, periodic monitoring reports during festive seasons and daily price reports for hypermarkets which are participating in the price reduction campaign.

The reports are used by his ministry to study the supply and distribution channels for all the essential items, to avoid a shortage of goods.

"The reports also act as a reference for the National Economic Council which will formulate strategies to reduce inflation."