I think we can all agree with this statement; inflation sucks. Sighhhh.

Inflation has been a pressing issue in the Philippines, especially over the past few years. It affects not only the economy but also the daily lives of ordinary Filipinos. From food to personal care products, the rising prices are felt across households. In this weekly grocery series, I will share how inflation impacts necessities like rice, toothpaste, and canned goods, and provide a breakdown of the price changes in recent months.
I will also share insights from the National Economic and Development Authority (NEDA), on the daily food budget for Filipinos.

NEDA on the Daily Food Budget for Filipinos

**According to the National Economic and Development Authority (NEDA) the estimated daily food budget for a Filipino family to maintain a modest yet nutritious diet is now significantly higher due to inflation. NEDA's latest figures suggest that:

The daily food budget for a family of five is approximately ₱500-₱700, depending on the region. This budget is expected to cover three meals per day, including rice, protein sources (fish, meat, or eggs), vegetables, and some snacks or other basic food items. Which would be a challenge to budget for the whole day especially when you have children that goes to school.

For individual Filipinos, the daily food allowance is roughly ₱100-₱150, which is stretched to cover meals and snacks throughout the day.

This amount reflects basic nutrition needs, but it is clear that inflation has made it challenging for low-income families to maintain a healthy diet without cutting costs on essential nutrients. In response to this, NEDA has suggested that Filipinos might need to adjust their consumption patterns by incorporating cheaper, locally available alternatives into their diets, such as root crops, plant-based proteins, and seasonal vegetables. That might be impossible for a family that lives in the city where root crops and seasonal vegetables are more expensive.

However, even with these adjustments, many Filipinos feel the strain as price increases outpace wage growth. NEDA has also called for government interventions to manage inflationary pressures, particularly in agriculture and food production, to help stabilize prices in the future.

Here are some of the basic products that are affected by the inflation:

1. Rice

Rice is the staple food of Filipinos, and any increase in its price can heavily affect household budgets. Factors such as weather disturbances, limited local supply, and rising importation costs contribute to price hikes.

Average Price Before Inflation (2023): ₱38-₱44 per kilogram
Current Price (2024): ₱45-₱70 per kilogram

This price increase may not seem like much at first glance, but for low-income families, even a slight change can impact their daily expenses, especially when multiplied over the course of a month.

2. Toothpaste

Personal care products like toothpaste are also seeing higher prices. Inflation affects not only food but also consumer goods due to increased production and distribution costs.

Average Price Before Inflation (2023): ₱50-₱60 for 150g tube
Current Price (2024): ₱60-₱90 for 150g tub

Toothpaste, though a small part of the budget, is a necessity, and price increases add to the cumulative pressure on household expenses.

3. Canned Goods

Canned goods like sardines, corned beef, and other preserved food items are staples in many Filipino households. These products are often used as a quick meal solution, and they’re particularly valuable for families during tough economic times.

Sardines (before inflation): ₱16-₱22 per can
Current Price (2024): ₱23-₱28 per can
Corned Beef (before inflation): ₱30-₱70 per can
Current Price (2024): ₱40-₱90 per can

These price changes reflect the overall impact of inflation across various food products. Canned goods, being a pantry essential, are highly sensitive to inflation because they are mass-produced and often subject to changes in import taxes or raw material costs.

4. Cooking Oil

Cooking oil is a kitchen necessity for many Filipino dishes. Due to rising global prices for palm oil, soybean oil, and sunflower oil, cooking oil in the Philippines has also seen a significant price hike.

Average Price Before Inflation (2023): ₱120-₱150 per liter
Current Price (2024): ₱160-₱200 per liter

The increase in cooking oil prices directly impacts food businesses and households that rely on it for daily cooking.

5. Bread

For many Filipinos, bread is a breakfast staple. However, the cost of ingredients such as wheat has increased due to supply chain disruptions and global market conditions, driving up the price of bread.

Average Price Before Inflation (2023): ₱50-₱60 per loaf
Current Price (2024): ₱65-₱80 per loaf

The Bigger Picture:

These rising costs of essential goods are becoming a real challenge for Filipino households especially those with limited income. Some households might cut back on less needed items, some would be using alternative, cheap products to sustain their needs.

The Final Thoughts:

Inflation continues to affect every one of us, but understanding its impact can help individuals make more informed decisions when it comes to managing their finances. By staying updated on price changes and exploring cost-saving strategies, Filipinos can better navigate these difficult economic times.