The same survey shows that inflation remains the top national concern for Filipinos, and most adults consider it an urgent one. 

A survey by Pulse Asia shows that the government received a net approval rating of -66 when it comes to handling inflation in the Philippines. What this approval rating means is that 71% disapproved of how inflation has been handled, while 24% are undecided and 5% approve. 

The study, which was conducted from March 6 to 10, 2024, notes that inflation remains the Filipinos’ top national concern. 

The results of the Pulse Asia survey come after the Philippine Statistics Authority (PSA) said that inflation in the Philippines quickened to 3.7% in March. Because of this, the national average inflation for the first three months of 2024 is at 3.3%. 

Main Drivers of Inflation in the Philippines

According to the PSA, “The uptrend in the overall inflation in March 2024 was primarily influenced by the higher year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 5.6% during the month from 4.6% in February 2024.” 

“In addition, the faster annual increases in the indices of transport at 2.1% during the month from 1.2% in February 2024, and restaurants and accommodation services at 5.6% in March 2024 from 5.3% in the previous month contributed to the uptrend,” it added. 

The PSA also noted that higher inflation rates were also seen in the indices of health at 3.2% and recreation, sport and culture at 3.9%. In the previous month, the inflation month for the aforementioned indices were at 3% and 3.8%, respectively. 

How Inflation Affects Businesses 

As inflation remains to be a top concern for both the government and the public, its impact is felt across different sectors and industries. Forbes points out that inflation “affects just about every area of a business,” including higher transportation, utility, and equipment costs, as well as increases in rent. 

Inflation likewise affects how businesses choose to operate daily and how they make internal decisions, such as the willingness to take financial risks, whether to hire more or lay off more employees, and which expenses to cut in order to save money. 

However, Forbes notes that “not all inflation is bad.” 

“A natural progression of pricing and expenses lets you increase your revenue and makes it financially beneficial to expand whenever you can,” Forbes explains. “When prices for everything rise gradually, you can increase prices for your products or services without raising red flags with your customers.” 

Given this, there are steps that businesses can take in order to survive inflation. Businesses should make sure to control costs without sacrificing quality in order to still satisfy the needs and expectations of customers. 

These expectations should likewise be managed so that there is room for reasonable price increases. Lastly, inflation will result in an increase in costs. Surviving it entails flexibility, which means businesses should not be rigid. Instead, businesses should be able to adjust plans in response to inflation in the country.