FATHER SATURNINO URIOS UNIVERSITY

READINGS IN PHILIPPINE HISTORY

FINAL REQUIREMENT

RESEARCH PAPER

YOUR STAND ON THE RECENT EVER-INCREASING INFLATION AND HOW IT

WOULD BE LIKE AS WE ARE GOING TO CELEBRATE CHRISTMAS IN A MONTH.
WILL IT DIMINISH THE CHRISTMAS SPIRIT AS FILIPINO KNOWS IT?

Dwieght Ace Gerona

Eshe Rae Arquion

Suzette Pogoso

Aveguel Cahulogan

Angelica Ferlyn Luna

Katiren Emfimo
 A. Introduction

The Philippines is known for its most extended Christmas season. People anticipate
malls to begin playing traditional Christmas music as early as September. As certain as Jose
Marie Chan's songs being played on the radio, social media will also be filled with jokes about
his awaited Christmas return. Just as likely, people would begin to fret about the
overwhelming cost of the holiday season, whether in the way of travels, Noche Buena dinners,
or Christmas gifts.

Christmas Eve is fast approaching and Filipinos are already accustomed to the Noche
Buena culture. But we've wondered for months now, what will become of the already
overpriced goods nearing Christmas Eve? Will they become more overpriced than they
already are? Will the Filipinos buy these goods out of tradition regardless of price for the sake
of the Noche Buena culture? Or will the goods remain unbought due to their overly overpriced
nature?

Well, we most likely stick to the fact that the most apparent rule about inflation
reciprocates the law of demand and supply. Thus, when its supply percentage increases,
consumers' demand for items will likely decrease as they will place a greater emphasis on
purchasing necessities and saving their purchasing power. Hence this paper will focus on
comparing and contrasting the effects of the ever-increasing inflation on different kinds of
vendors and consumers and if this worldwide crisis can diminish the Christmas spirit for the
Filipino people.

B. Overview

The annual Consumer Price Index (CPI) inflation in the Philippines accelerated to 8%
in November, from 7.7% in October 2022, the highest recorded inflation since November
2008 (Philippine Statistics Authority, 2022).

Studies conducted by Ipsos1 on holiday shopping reported that 87% of respondents

from twelve nations are bothered by the growing cost of products, with 55% indicating that
they are significantly more anxious than they were the previous year. Compared to last year's
end-of-year or Christmas celebrations, 63% of respondents from the Philippines indicated

1
Ipsos is the global leader in market research.
that price hikes this year are likely to increase their stress levels. At least 22% of respondents
indicated Christmas stress due to growing expenditures would remain the same this year,
while 13% believed it would lessen (Holiday Shopping 2022: Mixed Feelings as Consumers
Are Anxious but Eager to Celebrate, 2022). Hence, the majority claim that the increasing price
of energy and food continues to burden the most vulnerable households in the Philippines,
thereby posing a problem in the country's economy and poverty rate.

Several factors could contribute to an increase in inflation, including rising global food
prices due to fertilizer costs, adverse weather conditions, and trade restrictions, resulting in a
limited supply of certain imported goods. On the domestic front, possible upward pressures
on inflation include increases in transport fares, increases in the prices of sugar, fruits, and
vegetables, and the non-extension of Executive Order No. 171, which would lead to a higher
tariff on pork, rice, corn, and coal. A further slowdown in global economic activity could also
temper price pressures due to a reduction in global demand (Bangko Sentral Ng Pilipinas
Price Stability, n.d.)

C. Challenges

Inside the depths of the "palengke," there were scarcely any sellers or customers.
Few consumers flitted from booth to booth as vendors sold their newest goods. People mainly
congregated in the spots closest to the walkway. Most consumers have already felt the recent
increases in food prices who have seen their lunch budgets and pantry stocks diminish. But
inflation poses a grave danger to the livelihood of those who sell their goods in the local
market. Most of the vendors have quit selling because of small deals, rampant losses, and
zero investments. They also complain that due to the increase in inflation, they need to earn
more in one day as they only sell half of what they used to sell. To support our claim, we
interviewed several local vendors and consumers in our area with differing status.

Marie Tuba-o of Brgy. Agao, a local viand vendor, said, “Nimahal naman jud ang mga
palitonon, wala koy mabuhat kundi gamayon akong porsyon kay kung mahalon nako ang
presyo, mugamay akong mga customer.” [I have no other option than to lessen the portion of
viand my customers get, because if I increase the price of my product, my customers would
lessen.]
 Additionally, she stated “Karon kay hapit naman ang pasko, gamay-gamay na lang
jud ang handa nato ani kumpara sa mga niaging pasko, basta maka handa para
makapasalamat sa Ginoo…hangtod lang sa makaya.” [Now that Christmas Eve is nearing,
our feast will be smaller than it used to be, just enough to give thanks to the Lord.]

Ruthy Luengas another vendor from Barangay Ampayon, said, "Mahal na kaayo ang
mga palitonon karon, maong gidugangan nako ang presyo sa akong baligya pero nigamay
pud akong customer". [Things are very expensive now, so I increased the price of my products
but my customers also decreased.]

From the preceding paragraphs, both are vendors but have differing coping
mechanisms as to how they sell their goods during this time of inflation. Marie opts for
lessening the quantity of the viand her customer receives as to not increasing her selling price
for fear that her customers might diminish. While Ruthy increased her price to keep up with
the inflation which in turn decreased the number of customers she gets.

As the marketplaces grow for almost all commodities. What will happen to those
individuals who find it challenging to purchase items due to the high cost and who do not have
enough money to celebrate Christmas Eve?

Mercy Mondejar , a consumer from Brgy. Golden Ribbon stated “Mahal na gyud tanan
mga palitunon hilabi na nga paabot na ang pasko pero dili naman na ikatingala kay halos
kada pasko man gyud mahitabo nga mo taas ang mga pamaliton, mapugos gyud ta handa
ginagmay unsaon man mahal palitunon karon.” [Food costs are very expensive now that
Christmas is coming, but it is not surprising because it happens all the time during holiday
season, we are going to be forced to prepare a feast. What much can we do? It’s very
expensive nowadays.]

Benson Yu, a businessman in Brgy. Agao said that “Magpasko uy, Noche Buenang
ginagmay. Mapugos tag palit ani, tradisyon man. Para pod makapasalamat sa Ginoo.” [We
will celebrate Christmas with a small Noche Buena. I will be forced to buy, it’s tradition. So
that we can thank the Lord.”]
 D. Insights

One thing you will hear from the most ordinary people around the corner you will meet
is the complaints about the growing crisis they are feeling right now. Inflation in our country
has soared so high. As we dig deeper in this paper, emotions were clearly mixed up as these
vendors and consumers impart their opinions regarding the status quo.

The brutal fact about inflation is not just the economic part of it, but also on how it
affected each Filipinos family tradition and Christmas culture. When commodity prices rise,
an average-wage person may be compelled to adopt a more modest way of life. A high
inflation rate will decrease your purchasing power, leaving you with less money to spend than
you would like. Those in poor households struggling to make ends meet may find it disastrous
to pay extra for necessities such as food and transportation. Inflation also reduces the global
minimum wage, which impacts its purchasing power and living level for those who rely on it.

People may ask, how can an ordinary Filipino survive the inflation we are facing right
now? Citizens in our country are the ones who bear the highest burden when it comes to
inflation problems in our country. Not only that the cost of our prime commodities, such as
food and groceries skyrocket, but people are also facing fare hikes and higher rent for houses
and apartments. Inflation is growing while their salary and wages remain the same. You can
imagine the rigid budgeting they have make to stretch the income they have to feed their
families. Most Filipinos are resilient, withstanding any challenging situations, bending and
stretching their money and income to survive and as we face this national dilemma, a slight
increase may be tolerable for the budget. Still, if the price of practically every Christmas staple
item continues to rise, the only solution in 2022 may be to change the menu to be more
affordable.

Lechon, pasta, ham, fruit salad, lumpiang shanghai, Noche Buena is incomplete
without any of these foods. In fact, they are some of the most popular holiday dishes in
Filipino households. But some may be unable to afford the customary Christmas Eve
meal due to the high inflation and continued rise in costs of essential goods.
 Despite the absence of these particular Noche Buena essentials, is it the basis for
a merry Filipino Christmas? Well, certainly not. As we reach the peak of this paper, most
of our interviewees had one thing in common – that they will celebrate Christmas.

E. Conclusion

In conclusion, a soaring inflation may be an enormous economic dilemma for a

country such as the Philippines that is also struggling with poverty but Filipinos have a
resiliency in them that will adapt to situations like increasing inflation. Inflation will never
abolish the Christmas spirit established to us Filipino. We’ve seen and felt the situation
our fellow countrymen is in and as students, experience it also since we are also
dependent to our parent’s income.

Christmas Eve is an important opportunity to reunite and foster stronger ties with
the family; even if there is only a tiny celebration, Christmas will continue to be marked,
as long as the family is whole. Thus, inflation will not diminish the spirit of Christmas.
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