Philippines grappling with inflation and economic woes

Economic growth in the Philippines continues to slow down. The country has been facing severe inflation.

Some analysts believe the government, unable to improve the economy, wants to divert the public’s attention elsewhere.

Traders say prices are soaring so fast that displayed prices quickly become outdates. They choose to verbally quote prices instead of putting on price tags. Since April, the monthly inflation rate in the Philippines has ranged between 6% and 7%. During the same period, the inflation rate in Hong Kong was 1% to 2%.

An engineer in the Philippines, George feels the pressure of inflation as well, even though his income qualifies as middle class. The price of a pound of banana is around 7 to 9 Hong Kong dollars when converted, similar to the cost of bananas after being shipped to Hong Kong.

GEORGE CHUA CHAM: “Our labour cost is high, our electricity is high. The price doesn’t come down. The old good times, it never comes back anymore.”

Jaz opened a Siu Mai store five years ago, attracting plenty of customers in the early days. However, with the economic downturn, consumers are no longer willing to spend on dim sum. At the beginig of this year, she decided to close her business and focus on taking care of her children.

JAZ: “so now is the stockroom.”

She is dissatisfied over the government’s failure to take concrete measures to ease the public’s hardship.

JAZ: “In some countries, if the citizens there are very down, they help, but here in the Philippines, they don’t care about it.”

The authorities are trying to phase out their public transport, Jeepneys, to combat pollution. With fares as low as 14 pesos, which is around 2 Hong Kong Dollars, these are vital lifeline for low-income commuters. Modernization efforts have sparked concern as replacing them will raise travel costs and burden ordinary families.

Some scholars say the current administration lacks practical solutions and is trying to divert attention instead.

Chairman of The Philippine Institute for Peace, Violence and Terrorism Research ROMMEL BANLAOI: “The best way to divert the attention of the people away is to fund the issue of the South China Sea. Because in the South China Sea, Filipinos are united.”

Nian Peng from The Hong Kong Research Center for Asian Studies also believes manufacturing external enemies to avoid internal problems will eventually pose a dangerous situation to the current administration once exposed. And it is usually the citizens who suffers.