Rising food and fuel prices hit poor Filipinos hardest not just because inflation is high, but because millions of families already struggle with grossly inadequate incomes, research group IBON said. The 8.2% inflation suffered by the poorest 30% of households exposes the deeper crisis of low wages, insecure jobs, and inadequate social protection that leaves families extremely vulnerable to every new price shock.<\/p>\n\n\n\n
Inflation for the poorest 30% of income households stood at 8.2% in August 2026, unchanged from the previous month but a sharp jump from -0.6% a year ago. Higher prices of food, utilities, and fuel contributed to the increase.<\/p>\n\n\n\n
Rice inflation reached 19.4%, the highest since it hit 20.9% in July 2024 when the price of regular-milled rice cost Php50.90 per kilo. In August, the price of regular-milled rice increased to Php49.80 per kilo from Php40.43 a year earlier. Electricity rates also hiked after the Energy Regulatory Commission (ERC) allowed Meralco to recover under-recoveries, adding Php0.08 per kilowatt-hour, or around Php16 per month for a household consuming 200kWh. Liquefied petroleum gas (LPG) prices surged, with inflation at 29.6%, pushing prices to Php988\u2013Php1,498 per tank from Php800\u2013Php1,070 last year.<\/p>\n\n\n\n
These increases occur as millions of families already cannot afford a decent standard of living. IBON estimates 7.7 million families, or 25% of all families, survive on an average monthly income of only Php12,835. As of August, the average nominal minimum wage of Php514 was Php795 short of the estimated Php1,309 needed daily to meet the food and non-food needs of a family of five. Three out of every five employed Filipinos are in poor-quality, insecure, and low-paying work.<\/p>\n\n\n\n
The group said that the problem is therefore much bigger than today\u2019s inflationary surge. Price increases translate immediately into hunger, deprivation and debt when wages are too low, jobs are insecure and families have little protection against economic shocks. The Marcos government\u2019s persistent understatement of the country\u2019s poverty and jobs crisis rationalizes social protection falling far short of what is needed.<\/p>\n\n\n\n
IBON estimates that up to 22 million Filipino households need assistance amid price shocks and calamities. Yet the government\u2019s Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT) program, intended to address the impact of the oil crisis, targets only 7.6 million households to receive token amounts, with just 5.6 million served as of September 1.<\/p>\n\n\n\n
The Marcos Jr administration must act decisively to protect household purchasing power through substantial wage hikes and expanded social protection and basic public services. Assistance should reach all families that need it and provide meaningful support rather than token amounts, while safeguards are needed to prevent aid from being used for political patronage.<\/p>\n\n\n\n
But relief alone will still leave families vulnerable to the next round of price increases. IBON stressed that the government needs to strengthen domestic agriculture and Filipino manufacturing to reduce dependence on imported food, fuel and other basic needs while creating stable, formal and better-paying jobs. <\/p>\n\n\n\n
Filipino families will remain vulnerable to every price shock for as long as the government provides inadequate social protection while keeping the economy underdeveloped with low wages, high informality and joblessness, and unable to produce enough of the people’s basic needs.<\/p>", "protected": false }, "excerpt": { "rendered": "
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