How can inflation affect the daily lives of ordinary Filipinos? Provide examples.
Answer (2)
Inflation has a direct and powerful effect on the daily lives of ordinary Filipinos, especially those in low- and middle-income households. It affects the cost of basic needs like food, transportation, electricity, education, and healthcare.When inflation rises, the purchasing power of money falls. This means that the same amount of money buys fewer goods than before. For example, a family in Quezon City that used to spend ₱100 to buy 2 kilos of rice may now only be able to buy 1.5 kilos if the price increases. This forces families to adjust their budgets, often cutting down on important but non-essential items like vitamins, snacks, or school supplies.Inflation also affects transportation costs. If fuel prices go up, jeepney and tricycle fares increase. A student or worker commuting daily will feel the burden quickly. In rural areas, where people travel far to get to school or work, this cost can become a big portion of the family’s weekly budget.Another impact is on education and healthcare. If tuition or medicine becomes more expensive due to inflation, some families may postpone check-ups or pull out their children from private schools. Inflation can even affect mental health, as people feel more stress about how to make ends meet.Small businesses also suffer. If a sari-sari store owner in Cebu needs to restock but her suppliers charge more, she has to raise her prices too. If customers cannot afford the new prices, she earns less and may even close her store.How Filipinos Cope with InflationRely more on remittances from OFWsBorrow from neighbors or loan appsCut down on food variety or nutritionIn short, inflation reduces the standard of living, especially for those with fixed or low incomes. That is why controlling inflation is one of the top priorities of the Bangko Sentral ng Pilipinas and the government. Programs like fuel subsidies and cash assistance can help ease its impact.
Inflation affects the daily lives of ordinary Filipinos by increasing the cost of basic goods and services, reducing their purchasing power.Some Examples of InflationFood Prices - When inflation rises, the cost of essentials like rice, vegetables, and meat also increases. A family that used to spend ₱500 on groceries may now need ₱600 for the same items.Transportation - Fare hikes in jeepneys, buses, and tricycles often follow fuel price increases. A commuter who spends ₱50 per day on transportation may have to spend ₱60 or more.Utilities and Rent - Higher inflation can lead to increased electricity, water, and rental costs, straining monthly budgets.Savings Value Drops - Inflation reduces the value of money over time. If someone saves ₱1,000, it might buy less in the future if inflation is high.Wages Lag Behind - Salaries don’t always increase at the same rate as prices, making it harder for workers to maintain their standard of living.
