A government report released on Wednesday, September 5, revealed that the Philippines’ inflation rate in August 2018 hit 6.4 percent, a new high in nearly a decade.
The new record high Inflation rate is only 0.2 percent shy from the 6.6 percent inflation rate recorded in March 2009.
For the past six months, inflation rate also exceeded the Bangko Sentral ng Pilipinas’ estimates of two to four percent.
Despite this, Budget Secretary Benjamin E. Diokno said the inflation is expected to slow down in the last quarter of the year. This was echoed Bangko Sentral Governor Nestor Espenilla who said that inflation will return within the comfort range next year.
How will this affect OFWs?
Inflation rate is defined as the sustained increase in the prices of general and common goods and services in a country.
While the dirham-peso exchange remains high within the Php14.50 – Php14.60 range, as of press time, it means nothing for OFW families if the continuous inflation in the country and uptick in prices would be taken into consideration.
Several lawmakers are already seeking ways to help OFW families with the rising prices of goods in the Philippines.
Earlier, ACTS-OFW Representative Aniceto Bertiz III called for banks to lower remittance charges from the average 10.57 percent transfer charge to 5 percent.
Bertiz said the move can help OFWs save extra money since the rising prices of goods in the country only negates the lower value of peso.
“Reducing the cost of bank remittance services to 5% would mean some $1.5 billion or P80.1 billion in cost-savings and extra money in the pockets of our migrant workers and their families every year,” Bertiz said.