Filipinos continue to struggle with the high cost of living because the prices of basic goods and services are rising faster than what their wages and incomes can keep up with.
From July 2025 to July 2026, the prices of regular-milled rice, potato, sweet potato, carrots, Baguio beans, monggo, tomatoes, kangkong, pechay, bangus, tilapia, galunggong, mackerel and beef increased by Php4 to as much as Php26 per kilo. In Metro Manila, electricity rates also rose from Php12.6435/kWh to Php14.8261/kWh. Water rates remain higher despite recent rollbacks—Manila Water’s 2026 rates increased by Php8.39/cubic meter and Maynilad’s by Php2.15/cubic meter.
The Philippines also continues to have one of the highest inflation rates in Southeast Asia, at 6.4% as of July, behind only Laos at 7.4% and Cambodia at 7.2%. Inflation was much lower in Vietnam (4.7%), Indonesia (3.3%), Thailand (2.4%), Malaysia (2.0%), Singapore (1.8%) and Timor-Leste (0.4%).
Wages, meanwhile, have barely moved. The Philippine average minimum wage rose by only Php31, from Php481 to Php512. This is nowhere near enough to cover the average family living wage (FLW), estimated by IBON at Php1,277 a day for a family of five and Php1,533 for a family of six.
Government assistance is also far from sufficient. The official website for UPLIFT, the government’s program intended to help vulnerable households amid the energy emergency, reports only some 2.7 million beneficiaries assisted to date. This is a small fraction of the roughly 21 million households that IBON estimates are vulnerable to the current cost-of-living crisis. Even the one-shot assistance given of Php3,000-5,000, supposed Php1,500 fuel subsidy, and other announced measures are meager against rapidly rising food, electricity and other basic expenses.
The government can make it easier for Filipino families to cope especially amid difficult times. Until it does, the high cost of living will remain a crisis that persistently low wages and inadequate government assistance cannot overcome. The government should substantially increase spending for social protection and basic services, ensure that the assistance reaches the millions in need instead of being abused for patronage purposes, and mandate meaningful wage increases. In the long run, strong domestic agriculture and Filipino manufacturing firms are essential to ensure not just affordable goods and services for the population but also sufficient formal jobs with decent pay.
