The Beat Asia Asks: Inflation Not That High? Pinoys Disagree

The Beat Asia Asks: Inflation ‘Not That High’? Filipino Consumers Don’t Think So

Just as we thought we were nearing the last stage of COVID-19, recent months have seen the world deal with yet another catastrophe. Like the virus, this new villain is ripping through consumers’ wallets and forcing them to stay home. Shoppers call it the “B” word, but economists call it inflation.

In the Philippines, inflation — the rate at which consumer prices are increasing — soared to 6.1% in June. This was the highest level since late 2018, when the country was grappling with rice shortages. Today, however, a host of factors is pushing up consumer prices to levels not seen in the last few years. These include external players such as the geopolitical crisis in Ukraine and Russia — and the ensuing impact on oil costs — as well as domestic consumer demand renewed by the urge to spend more after years of being cooped up at home.



Inflation is Super High. Now What?

After his first Cabinet meeting on July 5, President Ferdinand “Bongbong” Marcos, Jr. disputed the latest inflation numbers released by no less than the Philippine Statistics Authority (PSA), which on the same day reported that consumer prices had risen by 6.1%.

"I think that I will have to disagree with that number. We’re not that high,” Marcos, Jr. said. He admitted, however, that the country is likely to surpass its inflation threshold of 2% to 4% — a trend seen even in advanced economies like the United States.

The president’s remarks drew mixed reactions on social media. Reacting to a Rappler report on the news, one Twitter user said: “I didn’t know inflation rates are up for debate.”

Inflation Not That High


Another netizen also encouraged government officials to check the situation on the ground to see that consumer prices are indeed surging. Citing his own experience, the netizen noted that cooking oil jumped to P70 from P50 in less than a month.

Inflation Not That High

Netizens also lamented that instead of refuting the numbers, the Marcos administration should instead propose a plan to combat the surge in prices of consumer goods.

Inflation Not That High

Meanwhile, Finance Secretary Benjamin Diokno quickly clarified the president’s remarks, which he said were “misunderstood.”

“The President’s disbelief at the 6.1% June 2022 inflation rate figure was misunderstood. He was referring to it as a full-year figure when in fact, the year-to-date, meaning January to June average inflation rate is actually 4.4%,” Diokno told the press.

On the other hand, PSA chief Claire Dennis Mapa said the agency “stands by its report” when sought for a reaction to Marcos Jr.’s statement, GMA News reported on July 5.

The Beat Asia Asks: How Does Inflation Affect You?

While macroeconomic indicators like GDP and inflation provide a clear picture of the country’s economic situation, they often mean nothing but mere numbers for a household that’s too busy making ends meet. That inflation “is not that high” may not be too comforting for a breadwinner struggling to put food on the table or a contractual worker trying to make it until the next payday.

To get the pulse of the people, The Beat Asia asked the public whether they feel the impact of inflation or not. Here are some of their answers:

Echoing the interviewees’ sentiments, a recent Pulse Asia survey revealed that most Filipinos want the Marcos administration to prioritize tackling inflation. Fifty-seven percent of those surveyed from June 24 to 27 said the government must take “immediate steps” to control the massive increase in consumer prices. Of this number, 29% said inflation should be the top national concern, overshadowing other pressing concerns such as COVID-19 and corruption.

Subscribe to The Beat's newsletter to receive compelling, curated content straight to your inbox! You can also create an account with us for free to start bookmarking articles for later reading.