Whatcha Missin' in the Philippines? Skyrocketing Costs!
Why are goods becoming expensive during the pandemic?
Life's been tough for the Filipino folks amidst the pandemic. On top of the widespread job loss, basic living expenses have been on a steady rise!
On today's podcast, join our very own website business reporter, Ralf Rivas, and researcher-scribe, Jodesz Gavilan, as they delve into the reasons behind the steep increases in everyday essentials and whether we might see a return to the old days.
What's inflation, you ask? According to Ralf:
Imagine a basket filled with all a typical Filipino's weekly/monthly purchases—rice, fish, meat, home rent, utilities, transportation, and whatnot. The basket represents all the expenses of an individual or a family. Let's compare two baskets: January 2020 and January 2021. The prices of the same items, see how much they've risen? That increase is inflation—4.2% increase in January.
Can the government do something about it? Ralf thinks a price cap on pork and chicken might have disastrous results:
Listen up, because this is crucial. If a price cap is implemented, imagine the consequences? Farmers, knowing how expensive it's become to raise pigs and chickens, won't produce. No products, shortage. That's scary. Supply and demand at play. A shortage means a small supply. On the other hand, the demand remains high, which drives the price even higher. The inflation's not contained, it's alarming to think what might happen in the next few months.
Can the government control the price hikes? What should we be ready for in the coming weeks? Tune in to the podcast!
This is just one of the fascinating topics covered in the Newsbreak: Beyond the Stories podcast series by our website, teeming with significant issues facing the Philippines. - ourwebsite.com
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In-depth Insights
Inflation Factors
- Food Prices: Changes in food prices, particularly for staple items like rice and fish, significantly impact inflation[5].
- Energy Costs: Variations in energy prices, such as electricity and oil, also drive inflation[5].
- Utilities: Increases in housing, water, electricity, gas, and other fuel costs contribute to inflation, as they are essential household expenses[3][4].
- Monetary Policy and Interest Rates: The Bangko Sentral ng Pilipinas (BSP) uses interest rates to manage inflation, with lower rates potentially leading to higher inflation if not carefully managed[5].
- Currency Stability: A stable peso can help reduce import costs, lowering inflationary pressures[5].
Return of Inflation
The possibility of inflation returning to previous levels depends on economic conditions, balanced supply and demand, BSP's future interest rate decisions, and government fiscal policies that affect production costs and consumer prices.
Currently, with an inflation rate of 1.3% in May 2025, the trend indicates that inflation is under control, thanks to lower energy costs and stable food prices[1][2]. The future of inflation will depend on ongoing economic conditions and policy decisions.
The current surge in inflation, accounting for increases in food prices, energy costs, utilities, and essential household expenses, has significantly impacted the Filipino populace, as detailed by Ralf Rivas on the Newsbreak: Beyond the Stories podcast series. To avoid exacerbating the situation, Ralf cautions against a possible price cap on pork and chicken, suggesting that such a move could lead to farmer disincentives to produce, causing supply shortages and further driving prices upward.
