HIGH inflation rates have been considered one of the issues that the Philippine economy faces. 

With the continuous rise of market prices and transportation, Filipino students continue to face the challenges of following through with a weekly or monthly budget. 

On Tuesday, the Philippine Statistics Authority (PSA) reported a rate increase in July following a slowdown in June due to a faster rise in utilities, food, and transportation costs during the time being.  

National Statistician and PSA chief Claire Dennis Mapa, an increase of inflation rise the prices of goods and services accelerated to 4.4% last month. The rise is said to be faster than the previous month’s 3.7% inflation rate. 

The inflation had also fallen within the Bangko Sentral ng Pilipinas’ (BSP) 4% to 4.8% forecast range. 

Why do we have inflation? 

Inflation happens when there’s an increase in the prices of services and goods. 

The indicator of inflation comes with the Consumer Price Index (CPI)—measuring the percentage change in the price of goods and services that are consumed by households. 

Inflation rates vary depending on how the economy is doing per month and are caused by demand-pull, cost-push, and inflation expectations.

While the idea of having a 4.4% inflation rate might seem like a small percentage for some—even the slightest point can have a huge impact on the price of goods and services

With the record of food inflation, tracking the movement of food items in a “basket,” rose to 6.7% in July from June’s 6.5%.

The higher food inflation contributed to the increased prices of meat and fruits. 

Meanwhile in the topic of non-food items, the National Economic and Development Authority (NEDA) reported that the  transportation fare had increased 3.6% in July from 3.1% in June. 

Filipino students and budgeting

republicasia had reached out to two zoomers to share how inflation affects their day-to-day lives.

Multimedia college student Kelvin Sayson shared how he is affected by inflation through his purchases of school supplies, transportation fare, and daily necessities such as food..

Aside from the expenses for his food and transportation fare, one of the most affected by the inflation is the price of daily necessities such as hygiene products.

Meanwhile incoming 2nd year Journalism student Marc Ureña, stated how the inflation rate unreasonably affected his daily expenses. 

“The inflation rate has stretched to the point that what used to be a reasonable weekly budget for the average college student of say 1,000 pesos is now something that one has to utilize to still have savings for any future purposes strategically.” He said.  

Coming from his hometown Angeles City, Pampanga–Ureña spends a total of 180 pesos on bus fare to get to his university in Intramuros, Manila. Adding to this is his 1,800 pesos weekly allowance that covers his expenses while staying in his dorm. 

Occasionally, he is also given extra for his other school-related expenses–amounting to an overall total of 2,000 pesos. 

With the amount of his weekly budget allowance, Ureña says that it’s enough. However, the continued rise of the prices while operating on a budget can be quite daunting. 

“I would say that it is enough and they sometimes joke about it being too much but they too know that, with the continued rising of most expenses, operating on a budget like that is quite daunting. It seems, they say, that everything is double what it’s worth now compared to when they were in college.” He said.  

Urena also added on how he plans to find a part-time job while studying.