Purchasing power plummets in Cebu as inflation rises; P1 now equals 83 centavos

The ongoing increase in the inflation rate in Cebu has led to the value of P1 now being 83 centavos.

Philippine Statistics Authority (PSA) Cebu chief statistical specialist Melchior Bautista revealed that the purchasing power of the peso (PPP) has plummeted to 83 centavos from January to March 2024.

"Usually, the purchasing power goes with the inflation," he said.

The PPP shows how much peso in the base period is worth in the current period. The value of P1 in 2018 now equates to 83 centavos in March 2024.

Bautista explained that it indicates that Cebuanos now have to pay more when they purchase items, compared to 2018.

"For example, in 2018, we can buy two kilos of rice at P100 but now it needs more peso to buy for two kilos of rice which resulted into decline in the power of the peso," he stressed.

With the deflating value of the peso, consumers struggle to meet ends, which means budgeting becomes more challenging.

Bautista also mentioned that from an economic standpoint, conservation becomes essential during times of crisis — a tool to survive the soaring inflation rate in Cebu.

"We have to buy enough in accordance with our needs," he added, as he urged consumers to spend their money wisely on things that matter.

Cebu Province's inflation rate in March 2024 increased to 0.3 percent from -0.2 percent in February 2024.