Time to address rising prices head-on
The current heat wave and El Niño have been hogging the headlines the past couple of weeks. With these pressing issues, the government and even the private sector have been focusing their attention on how to address these challenges.
But lost in the shuffle is the surge in the prices of goods and services. As temperature rises so do the prices of everyday essentials, leaving families struggling to make ends meet.
The country’s headline inflation rate has been a cause for concern. In February 2024, inflation increased to 3.4 percent, from 2.8 percent in January. The February inflation ended four straight months of decline. While this increase may seem modest compared to previous years, it’s essential to recognize that just a year ago inflation soared to a staggering 8.6 percent. The impact of this upward trend is felt by every Filipino, from the northernmost province of Batanes to the remote islands of Mindanao.
Food and non-alcoholic beverages inflation contributed much to the increase. Heavily weighted food items witnessed a year-on-year increase of 4.6 percent in February 2024, compared to 3.5 percent the previous month.
The cost of putting food on the table continues to surge. Families are grappling with higher prices for rice, vegetables, and other staples. Go to the markets, supermarkets, and even in your neighborhood stores and be a witness to these rising prices.
Transportation was another factor for February inflation to quicken. As we battle the heat while waiting for our ride, transportation costs continue to rise. A 1.2-percent increase in transport expenses in February 2024 adds to the burden of commuters and businesses alike.
The rising cost of housing, water, electricity, gas, and other fuels compounds the problem of Filipinos.
A 0.9 percent annual increase in this category further squeezes household budgets. Whether we like it or not, these are necessities we can’t do away with.
Alcoholic beverages and tobacco are no exception. Inflation in this category rose to 8.6 percent in February 2024, impacting both health and wallets.
Behind these inflation figures lie real stories of struggle. Families are forced to make difficult choices: Should they sacrifice nutrition for affordability? Should they cut back on education expenses to pay for rising utility bills? The pain is palpable, and it affects every socio-economic stratum.
With the rising prices, the government must find ways to address it.
While we recognize that market forces play a vital role, strategic price controls may help prevent profiteering. Authorities should monitor and regulate prices to ensure fairness.
Local food production should be strengthened to reduce reliance on imports and help stabilize prices. Support for small-scale farmers and modernizing agricultural practices are critical.
Government and the private sector should help empower citizens with financial literacy. Teach them how to make informed choices, compare prices, and manage their budgets effectively.
It is also crucial for the government to identify vulnerable populations and provide them with subsidies for essential goods. These include direct cash transfers to low-income families and assistance for farmers.
As we grapple with the rising heat and El Niño, let us not forget the economic heatwave we face. It’s time for the government to turn its attention to the grocery aisles, the utility bills, and the kitchen tables. By addressing rising prices head-on, we can ensure that every Filipino has access to affordable essentials, regardless of the temperature.