Despite the lower inflation rate, poor families are still struggling to put food on their tables because of its high cost, says independent think-tank IBON Foundation.
“Despite overall headline inflation slowing to 3.7% in June 2024 from 3.9% in May 2024, inflation in food and non-alcoholic beverages accelerated to 6.1% from 5.8% in the same period. Food inflation alone accelerated to 6.5% from 6.1 percent. This was mainly driven by faster increases in vegetables, tubers, plantains, cooking bananas, and pulses at 7.2% from 2.7%; in meat and other parts of slaughtered land animals at 3.1% from 1.6%; and corn at 13.1% from 6.5 percent. Rice inflation slightly decelerated but remained in the double digits at 22.5% from 23% in the same period,” said IBON.
According to IBON, their research shows that inflation for the bottom 30% of income households was much higher, accelerating from 3.6% in January to 5.3% in May and 5.5% in June 2024.
“This was largely due to faster inflation in food and non-alcoholic beverages which rose from 5.2% to 7.8% and 8.0% in the same period. Meanwhile, food inflation increased from 3.3% in January to 6.1% in May and 6.5% in June,” IBON further explained.
“Higher food inflation from May to June 2024 was due to faster increases in vegetables, tubers, plantains, cooking bananas and pulses to 4.1% from 1.5%; in meat and other parts of slaughtered land animals to 3.0% from 1.8%; and in ready-made food and other food products not elsewhere classified to 7.6% from 6.5 percent. Rice inflation for the poorest households also remained high despite lowering to 24.4% from 25.1 percent,” it added.
IBON also noted that notwithstanding the lower rice inflation as reported by the government, its prices remained high.
“The retail price of regular-milled rice has stayed at around Php51 per kilo since March and of well-milled rice at about Php56 per kilo since February,” the independent think-tank stated.
Meanwhile, IBON said that most Filipino families are having a difficult time coping with the soaring prices of basic food and beverages because of their meager income.
“For instance, the average daily nominal minimum wage of Php442 nationwide is just one-third (37%) of the Php1,210 nationwide family living wage (FLW) for a family of five as of June 2024. Even in the National Capital Region (NCR), which has the highest minimum wage in the country, the Php610 nominal wage is only a little over half (51%) of the Php1,190 FLW. The impending Php35 wage hike to Php645 will also barely make a dent – this will only cover 54% of the NCR FLW,” IBON explained.
Only just a week before the third State of the Nation Address of President Ferdinand Marcos Jr., IBON challenged his administration to “step up and go beyond its token vows to tame inflation amid millions of Filipinos’ very real struggles to make ends meet.”
“The government can start by giving a substantial wage increase towards a family living wage and more cash assistance to vulnerable families and providing support and subsidies to small businesses and producers. These will give immediate relief and in turn, help boost purchasing power and the local economy,” IBON stated. (NOEL SALES BARCELONA)
