Inflation is an economic factor that affects all levels of society, but its impact is particularly severe on the people with low-income of the Philippines. Inflation refers to the sustained increase in the general price level of goods and services over a period of time. When the inflation rate is high, the cost of living rises, making it difficult for those with limited resources to meet their basic needs.

The rising cost of all goods and services has great impact to people with low income in the Philippines.
Photo credit to wildpixel from

1. Erosion of Purchasing Power:

One of the primary ways in which inflation affects the people with low-income is through the erosion of purchasing power. As prices rise, the people with low-income find it increasingly difficult to afford essential goods and services, such as food, housing, and healthcare. For example, if the price of rice, a staple food in the Philippines, increases, families with low-income may have to compromise on the quantity or quality of their meals, which can have detrimental effects on their nutritional intake and overall health.

2. Impact on Housing Affordability:

Inflation also has a significant impact on housing affordability. As the prices of construction materials and housing units increase, low-income families struggle to find affordable shelter. Affordable housing becomes even scarcer, leading to overcrowded living conditions or the reliance on substandard housing options. This not only affects the living standards but also the overall well-being of the low-income population.

3. Effects on Education:

Education is another area where inflation affects people with low-income. With the rising prices, the affordability of educational materials, such as school supplies and textbooks, becomes a challenge for families with low income. Additionally, the cost of tuition fees and educational services may also increase, hindering access to quality education. As a result, children from low-income families may be forced to drop out of school, perpetuating the cycle of poverty and limiting their future prospects.

4. Effect on Employment and Income:

Furthermore, inflation has a domino effect on employment and income levels for the low-income citizens. As prices rise, small businesses face challenges in sustaining their operations and may be forced to cut back on staff or even close down. This leads to job losses and reduced income opportunities for the low-income citizens who already struggle to find stable employment. Inflation effectively traps the low-income citizens in a cycle of poverty, making it difficult for them to escape economic hardships.

How Government Mitigate the Effects of Inflation Rate

Pres. Bong-Bong Marcos released the 1000php cash aid to 9.3 million households who are affected by the inflation rate.
Photo from Facebook Page | GMA News

The Philippine government, recognizing the detrimental impact of inflation on the low-income citizens, has implemented various measures to mitigate its effects. For instance, it has implemented conditional cash transfer programs that provide financial assistance to the low-income households, aiming to help them cope with the rising costs of living. Additionally, the government has been consistently working to stabilize food prices by regulating the importation and distribution of essential commodities.

Inflation rate affects people with low-income in the Philippines in multiple ways, limiting their access to basic necessities, education, and employment opportunities. It perpetuates the cycle of poverty and hinders the overall socio-economic development of the country. To combat this issue, a multi-faceted approach comprising government interventions, policies, and programs is necessary to provide tangible support to the people with low-income  and vulnerable populations, ultimately aiming to bridge the gap between the rich and the low-income citizens and create a more inclusive society.