Inflation in the Philippines in 2022

Inflation no matter the country is relevant, all are feeling the hiked prices but as plebians? We always live with cost of living rises, never going to change, history shows this.

As for price rises here in PH? Is what it is and we simply pay the bills.

Cheers, Steve.

Mickael writes "In the various media, inflation in the Philippines is becoming increasingly important. This is becoming a concern for some, with fears of an impact on day-to-day budgeting. Today, how does inflation in the Philippines impact on daily life? Which products and services have increased the most (insurance, shopping, petrol, electricity etc.)? Have you had to review your budget? If so, what are your priorities? What solutions have expatriates found to curb the impact of inflation? Thanks for your future contribution. Kind regards, Mickael Team Expat.com @Mickael

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Mickael, as both Steve and the Manila Times write, there's little individuals can do regards inflation. Besides saving money.

For example ..

Manila Times, Editorial

"Long-term strategies best answer to skyrocketing inflation"

https://www.manilatimes.net/2022/06/08/ … on/1846552

ALTHOUGH the timing was entirely coincidental, it seemed grimly appropriate that the 2022 second quarter announcement of the Philippines' headline inflation, turned out to be the highest in three-and-a-half years, and came on the same day that local oil companies implemented their highest price increases in months.

And perhaps the most sobering realization in the unwelcome news about inflation is that there is no quick fix for it.

The 2nd Quarter 2022 inflation rate accelerated to 5.4 percent, according to the Philippine Statistics Authority (PSA), well above the government's target range, and the highest inflation rate since November 2018. Inflation at the beginning of this year was 3 percent.

Inflation indicators are still "trending upward," suggesting that even higher rates of inflation are in the offing in the coming months.

Unfortunately, the answer to the all-important question raised by the latest inflation figures, that being, "What can be done to lower inflation or otherwise reduce the burden on Filipino consumers?" is "not much."

For what it's worth, most of the causes of high inflation here — chief among them being food and fuel costs are largely external, and beyond the country's control.

The one exception might be high transportation costs — the transport component of the consumer price index (CPI) saw 14.6 percent inflation in May — which is partly due to poor planning on the part of the government causing a transportation shortage.

However, correcting this shortcoming will only go so far; transport costs are unavoidably affected by fuel costs, which are uncontrollable due to the Philippines being dependent on imports for most of its energy needs.

The only other easily accessible remedy to high inflation is monetary policy action by the Bangko Sentral ng Pilipinas (BSP), adjustments in interest rates and bank reserve requirements to either increase or decrease the money supply in the broader financial system.

However, there is only a relatively narrow range in which these kinds of policy adjustments can be implemented; too much intervention one way or the other can upset the economy's balance, potentially leading to a more severe economic slowdown than inflation alone might cause.

Fundamental causes

In our view, the only sustainable solutions to high inflation are those that directly address its fundamental causes — energy and food security.

In energy, the most effective way to reduce import reliance and develop the Philippines' energy independence is to redouble our efforts to adopt green energy solutions. Transitioning electricity production away from coal and especially oil- and diesel-fired power plants to renewable options will significantly reduce energy costs and price volatility.

Prioritizing the development of more mass transit, encouraging energy-neutral transportation such as biking, and loosening unnecessary restrictions that discourage the adoption of electric, hybrid or other energy-efficient vehicles will result in significant direct and indirect reductions in transportation costs.

In food production, the priority should be to adopt at least some of the many ideas and strategies that have already been developed for increasing farm productivity, diversifying Philippine agriculture, and improving agricultural supply chains.

Food security has long been a critical aspiration for the Philippines, and a multitude of concepts that can contribute to that goal have been offered throughout the years, but implementation has fallen woefully short.

Increasing the budget for the Department of Agriculture and other relevant agencies should be considered a necessary investment in the country's future, one that should have been made long ago, and must be made now.

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Omo : The dollar currently is the nicest looking house in a bad looking neighborhood.

Having said that....our residential electricity prices have increased by almost 20% & are expected to continue rising...Going SOLAR really helps insulate you from these price spikes.

Even my just installed Outdoor Christmas lights also run on SOLAR.

Hello @bigpearl, @PalawOne, @manwonder,

Thank you very much for your feedback on this thread. Very useful and appreciated.

All the best,

Bhavna

Yes to all of the above. However, as American ex-pats in the Philippines, my wife and I are doing fine, since we receive all of our income in US dollars (mostly Social Security). The increase in the exchange rate has more than doubled (tripled?) the rate of inflation here, and we will also be getting an 8.7% cost-of-living increase in our monthly checks starting in January, due to the even higher inflation rate in the US. I expect this situation will reverse itself at some point in the future, but for now, no complaints from us.

Side note for the admins: I'm always a week late to these conversations since I've only been reacting to your emails. (I just received Mickael's inquiry today, Oct. 26. Any chance you can send out the emails sooner, or is there an alert service that I should sign up to? Thanks -- Rich

Go to your profile, top R/H side, (Your pic/emoji) click your profile/bio. Then click Notification settings and simply change to suit what you want/need to receive or deny notifications.

Cheers, Steve.

@manwonder Consider ROI, lifetime and maintenance!