MANILA, Philippines -- Amid public fears over melamine-tainted milk products, milk producers might lower their prices by about 10 to 20 percent, President Gloria Macapagal-Arroyo said Thursday.

Arroyo, while inspecting Save More supermart in the Nagtahan area in Manila, told consumers that the price of Alaska brand milk, for example, has gone down.

"Alaska has brought down its prices. I noticed the housewives were buying Alaska. Bread prices will not go up for the rest of the year," said Arroyo during the inspection.

This was confirmed by Trade Undersecretary Zenaida Maglaya in a separate interview with reporters, noting that other milk brands might also reduce their prices.

"Alaska rolled back [its] price by 10 to 20 percent effective October 3...[there have been] a drop in price of flour and wheat and there will be no more adjustments from price movement in September," Maglaya said.

Maglaya said they were also eyeing reducing prices of flour as Christmas was fast approaching and basic food needs for the traditional Noche Buena like pasta and bread should be sold at lower costs.

"The price of flour will be good in November...we are not talking here of keeping prices stable, we want to bring them down [price]," added Maglaya.

Earlier in the day, Arroyo also inspected Liana's grocery in Pasay City and talked its staff regarding their milk products.

Helen Chua, an employee of Liana's grocery, said Arroyo inquired whether they were selling products from China.

Chua however said they were not selling that was why they were not covered by the ban that was imposed by the Department of Health on a number of milk items that were undergoing testing at the Bureau of Food and Drugs.

At least three milk products were found to have been laced with melamine and have since been pulled out of the market. These are Yili, Mengniu, and JollyCow Slender Low Fat Milk.

Pasay Mayor Wenceslao Trinidad also ensured that his city was melamine-free.