The trouble with inflation

At times many things can seem redundant. The topics that remain foremost in our minds have stayed the same for quite some time now, and while we’d love to move on to new things, the truth is, we can’t. We keep talking about the pandemic, the ongoing conflict in the world, and inflation because these things continue to shape how we live our lives. They aren’t abstract concepts or just topics of discussion, and they continue to impact us daily.

The global pandemic – which was top of mind for the past two years – continues to be a problem. Despite easing restrictions and life returning to a semblance of normalcy, with people going back to work and offices and schools opening up, the fact remains that we haven’t gotten rid of COVID-19. While we continue to move on with life and pray there are no more significant spikes – we still need to be careful. We can’t risk a steep increase in cases again.

And while many people have gotten COVID-19 and can manage it at home and in isolation, many still have to go to the hospital when home management is impossible. These cases – usually those who are immune-compromised, senior citizens or the very young – are still the ones we must watch out for as a community. The threat is still very real.

Over the last week, hospital emergency rooms have been full to overflowing. Many patients wait for over 30 hours to be able to be admitted, and more and more people keep arriving. Between COVID-19 and other infectious diseases like dengue, there remains a real threat to the healthcare system getting overwhelmed again. Just because it’s not the main topic of the regular news cycle doesn’t mean it’s not still happening.

We still need to remain very careful. Mask up and social distance when possible, and remind our children to be extra vigilant. Our economy can’t handle another alarming uptick in COVID-19 cases. And many businesses won’t survive any further economic recovery delays.

Things are already challenging enough between the pandemic and the ongoing inflation crisis. The cost of essential goods and services continues to increase. While other countries are seeing a tiny bit of relief in fuel costs, our fuel and energy costs continue to rise. The strain of these increases is taking a toll on Filipinos, and many cannot make ends meet in the face of price increases across the board.

The food shortage of basic items like salt, sugar, and onions, to name a few, is not helping either. It’s the perfect storm at the moment – fuel hikes make it harder to deliver supplies and raw materials, causing staggering shortages, and the continued rise in the cost of goods. Meanwhile, the average Filipino is struggling because while prices are rising, salaries are not.

At the same time, many businesses are in no place financially to increase employee wages. They are also still trying to get back on their feet from the past two years and the continued future uncertainty. At best, several offer shuttle services and other small allowances to help mitigate the cost of daily food and logistics. It’s not a long-term solution, but it’s the only thing many companies can do now.

So, where do we go from here? Things have been pretty dreary these last several years, thanks to COVID-19, but it seems that we are barely out of the woods, even if we have found ways of living with the pandemic. Many would even say that despite mobility restrictions easing, things haven’t really improved yet. As the saying goes, out of the frying pan and into the flame.

In the face of current challenges, the government has prioritized agriculture and food security while working on finding ways to stave off further inflation and support the weakening peso. While this is the current focus, many other sectors are also calling for relief, and it almost feels like things are bound to get worse before they get better. Right now, our best bet is good governance, sustainable institutional reform, a firm plan for economic recovery, and careful and deliberate use of limited resources.

The next several months, and through 2023, will be very telling for the future of the Philippines. We all need to work together to make it through this inflation crisis. That means making smarter decisions, negotiating lower rates on goods and services whenever possible, postponing big-ticket purchases, and looking at ways to diversify income and investments.

We need to take what’s working and strengthen it while changing what isn’t. It’s never too late to start, and the way things are going, it’s going to be more important than ever to have a good plan.