How does inflation affect the daily lives of ordinary Filipinos, especially those with low income?
Answer (2)
Inflation directly affects the cost of living, and it hits low-income families the hardest. When inflation occurs, the prices of basic goods and services increase. For example, if inflation rises by 6%, then something that used to cost ₱100 may now cost ₱106. That may seem like a small increase, but for families earning minimum wage or living on a fixed income, it makes a huge difference—especially when it affects food, medicine, and transportation.Let’s consider a family in Metro Manila where the father is a jeepney driver and the mother sells rice meals from home. If gasoline prices go up due to global oil inflation, the father has to pay more for fuel. This reduces his income. At the same time, the mother may notice that ingredients like vegetables and cooking oil have become more expensive. To keep earning, she either needs to increase the price of her meals or reduce portion sizes—both of which affect her customers.Also, many low-income workers do not receive regular salary increases that match inflation. If prices go up but wages remain the same, workers can afford less. For example, if a student’s daily baon stays at ₱50, but jeepney fare, snacks, and school materials become more expensive, they may have to skip meals or walk longer distances to school.Inflation also discourages saving. If someone saves ₱5,000 in a bank that earns 1% interest, but inflation is 5%, they are actually losing value over time. Their money’s purchasing power weakens.In summary, inflation reduces the value of money and makes it harder for ordinary Filipinos to afford basic needs. This is why controlling inflation is a major goal of the Bangko Sentral ng Pilipinas (BSP). When inflation is high, it can increase poverty, hunger, and social inequality. Understanding how inflation works can help citizens make smarter decisions about saving, spending, and budgeting.
Inflation makes everyday goods and services more expensive, which hits low-income Filipinos hardest because they spend a bigger portion of their income on basic needs like food, transportation, and utilities. As prices rise, their limited budget buys less, leading to difficulties in affording essentials, increased financial stress, and sometimes having to cut back on important expenses like education or healthcare.
