Amid the easing inflation rate in the Philippines, the president of a retail group revealed that in order for the Philippines to “have a brighter future” in the next 20 years, the government has to establish its local industries as Filipinos bear the brunt of “shrinkflation.”
This was highlighted during the media forum organized by Capstone-Intel Corporation when it revealed its latest survey on food security where it said only approximately six out of 10 Filipinos will be food-secured in the next six months.
According to Steven Cua, president of the Philippine Amalgamated Supermarkets Association (PAGASA), although the country has reached the curb of rising inflation rates, the nation is now facing “shrinkflation” in order for retailers to cater to the budget of consumers.
“Shrinkflation, pinag-uusapan natin, nagtataas ang presyo, lumiliit ang laman. Sobrang liit na eh [halos] wala nang laman. Sobrang liit na, eh. For example ‘yung sardinas, 155 (grams) is the regular size [of sardines] naging 140 (grams) para mag-shoot sa budget ng mamimili,” Cua said.
As per the results of the survey, most households (46 percent) said they spend P1,001 – P2,500 on food purchases weekly, adding that the consistent rise in food costs could financially distress Filipino households.
“Stability in food costs is critical for family budgeting nationwide. Persistently elevated food inflation could rapidly push more households into financial distress without mechanisms to offset price pressures on key dietary necessities,” Capstone-Intel Research and Publications Director Ella Kristina Domingo-Coronel said, referring to the results of the survey.
Cua said that due to these rising food costs, the national government has to support the establishment of its local industries in order to address the pressing food insecurity in the country, highlighting that if not taken into consideration, more Filipinos will become unemployed in the coming years.
“Either we have to come up with new brands or a lot of foreigners are coming in with their brands. That’s another surge of [unemployment]. Mawawalan ng trabaho ang mga Pinoy, tapos imported na lang para mas mura and heyday for smugglers,” he noted.
“You have to think of our own. We have to develop our industries if 20 years from now we want to see a brighter future,” he added.
PAGASA likewise said that although food prices have already “slowed down” he hopes that the inflation rate would also slow down. Cua also said that in developing local industries, the government also has to study the market in order to fully grasp the needs of the consumers.
Meanwhile, Capstone-Intel’s Chief Data Scientist Dr. Guido David said that while food security is an issue that needs to be addressed, the problem of food insecurity is not an issue that the country would face in the next six months.
“My impression is, we personally feel the security for food but we are also aware that we have to sort out issues regarding food security. Food security is an issue but not an issue for the next six months. So, ‘yun ‘yung impression ko,” he said.
During the forum, Capstone-Intel’s survey revealed that while the majority of the respondents, or 59 percent have described themselves as “very secured” or “secured” in terms of food security for the next six months, 42 percent have some concern with 34 percent saying they are neither secured nor insecure and 8 percent either “insecure” or “very insecure.”
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