In the recent days I have been keeping tab of movements in prices of goods and services, a quiet sense of worry has been building within me as an aging senior citizen because I realize that many of the things we rely on every day now cost significantly more than they once did. For many seniors especially those living on a fixed pension with no additional source of income, this concern takes on an even greater magnitude. Rising costs can be unsettling, particularly at a stage in life when financial flexibility becomes limited.
Fueling this concern is the continued weakening of the Philippine peso, which is now hovering near historic lows at almost 63 to the US dollar. Persistent geopolitical tensions and domestic economic challenges continue to weigh on the local currency, further driving up the cost of imported goods and putting additional pressure on household budgets.
Currency fluctuations are normal, but the peso’s continued slide shows the deeper structural weaknesses in our economy, particularly our continued heavy dependence on imports and the underdevelopment or sluggish development of local industries.
As an employee and a father – a provider for the family that I have built for more than 30 years – one does not need a degree in finance to know that the weakening peso impacts on our everyday lives. We feel it in grocery trips and in small luxuries such as dining out, which suddenly feel heavier on the wallet than before. If restaurants do keep their prices the same, chances are serving sizes will be smaller to cope with rising costs of raw materials.
From the reports I have read, this appears to be the product of a combination of economic, geopolitical and domestic factors that continue to influence prices and currency values. Dollar remains strong worldwide. Tensions in the Middle East push up prices and since we buy nearly all our crude oil from abroad, we feel its impact from thousands of miles away. Earlier this year, the government declared an energy emergency because of our thinning fuel reserves.
Then there’s the matter closer to home – the depreciation of the peso influences investor confidence and even the country’s credit ratings. Currency weakness discourages foreign investment and raises questions about the country’s ability to manage its economy. It also inflates the cost of servicing foreign debt, further straining government finances.
While overseas Filipino workers may benefit from remittances converted into more pesos, this is offset by the reality that their families here in the Philippines have to pay more for goods and face higher expenses.
It must be noted that this is happening in the context of persistently elevated prices of goods, as inflation remained barely unchanged in August. While the Philippine Statistics Authority reported a minimal easing in inflation to 6.1 percent from 6.2 percent in July, the rate remains well above the Bangko Sentral ng Pilipinas’ three-percent target. This means that households are already grappling with high prices, and the peso’s depreciation only adds fuel to the fire.
What I wish, at my age, watching all this from the sidelines, is that we stop treating this like weather we simply endure. What our economy needs is not another round of band-aid solutions, but structural reforms that strengthen our domestic industries as a cushion to global shocks. The government must invest in agriculture to support the growing local demand and reduce dependence on imported food. Manufacturing should be strengthened so that Filipino products can compete globally. Energy independence, through renewable sources, must be pursued to reduce reliance on imported fuel.
If we continue to rely on imports while overlooking the potential of our own industries, the peso will remain vulnerable to global shocks, and it will be Filipino households that feel the consequences most directly. Beyond strengthening a currency, the challenge is to build an economy that can stand on its own feet, create opportunities for its people and provide greater peace of mind for families.
I hope, for the sake of the next generation, that someone is already planting those seeds today. Nurturing local industries, investing in our people and thinking beyond the next election cycle will enable future generations to inherit a stronger, more self-reliant nation that is less burdened by the uncertainties we face today.
And perhaps one day, a headline about the peso will no longer mean fewer groceries in the shopping basket or a smaller serving on the family table, nor another sleepless night for a senior citizen approaching retirement and simply hoping to enjoy the years they have worked so hard to earn.