Research group IBON said that a wage hike is urgent and can bring much-needed relief as the costs of food and utilities continue to increase. The group emphasized that with unchanged January inflation, consumers continue to feel the pressure of rising prices as wages and incomes remain low and insufficient.
The Philippine Statistics Authority reported that January 2025 inflation stayed at 2.9%, the same as December 2024. This is a slight increase from the 2.8% inflation rate in January 2024, but much lower than the 8.7% high in January 2023.
IBON said however that despite the seemingly tamer inflation rate, prices have increased – especially that of food. In the National Capital Region (NCR), the prices of vegetables, fish, and meat rose by Php8 to Php51 per kilo, with the exception of tomatoes which shot up by Php84 per kilo from January 2024 to the same month in 2025. Regular milled rice registered negative inflation but remained expensive at Php45 per kilo.
Prices of other basic commodities, including petroleum products and water also surged in January. End-month oil prices increased by Php2.65 per liter for gasoline, Php4.80 for diesel, and Php3.80 for kerosene. Additionally, effective in January, Manila Water rates increased by Php5.95 per cubic meter (cu.m.), from Php55.08 per cu.m last year to Php61.04 per cu.m. Maynilad rates also rose by Php7.32 per cu.m., from Php58.30 per cu.m. to Php65.65 per cu.m.
IBON said that Filipinos’ wages and incomes are not enough to contend with the rising cost of living. Despite recent wage increases in some regions, such as Regions X, XII, and XIII, minimum wages still fell short of the estimated family living wage (FLW) or the amount needed by a family of five for their daily basic needs. On average across all regions, the nominal minimum wage of Php469 is Php762 below the Php1,231 FLW.
More and more Filipino families are slipping into poverty. The most recent Social Weather Stations (SWS) survey shows that six out of 10 Filipinos (17.4 million) consider themselves poor, while those experiencing hunger are at 7.2 million.
IBON stressed that a substantial wage hike is urgently needed in the face of prevalently low incomes and rising prices. The recent House Committee on Labor and Employment-approved Php200 across-the-board wage hike is an initial step that can alleviate struggling wage earners and their families. Higher wages will enable households to spend more in local communities, creating a multiplier effect that benefits small businesses and the informal sector.
IBON added that the Marcos Jr administration should couple substantial wage hikes with a truly transformative economic plan that includes strategically tempering inflation. This can involve ensuring and strengthening local production and supply of basic commodities as well as regulating distribution instead of massively relying on importation. ###
