PISO, FALLS TO P0.75; PURCHASING CAPACITY OF FILIPINOS, GETTING LESS

The purchasing power of the peso has slipped to P0.75 this April based on the latest report from the Philippine Statistics Authority (PSA) on Tuesday. According to confirmation from National Statistician Claire Dennis Mapa, the peso in the base year 2018 is now worth only seventy-five centavos due to the rapid rise in the country’s inflation rate.

The weakening of the peso’s purchasing power is attributed to the impact of the 4.1% headline inflation in March, which is the highest level in the past twenty months. The main culprit in the increase in the price of goods is the rapid inflation in the transportation sector which hit 9.9% due to the series of oil price hikes, as well as the increase in electricity bills and the price of basic foods.

As a result, one thousand pesos (P1,000) in 2018 can only buy seven hundred and fifty pesos (P750) worth of goods and services in the market today. Economists warn that this could further strain families in the bottom 30% income households, where the burden of inflation at 4.2% is felt the most.

Stay tuned for more details and reactions from the Department of Finance and business sectors.