When the basics become unaffordable

INFLATION becomes frightening not when economists announce another percentage point, but when ordinary families begin asking which necessity they can afford to sacrifice. That is the disturbing reality confronting Western Visayas.

Inflation in the region accelerated to 8.4 percent in August from 7.8 percent in July, making Western Visayas the fourth-highest inflation region in the country. Even more alarming, the region had previously ranked only between eighth and 11th nationwide. This is no minor statistical movement. It is a warning that the cost-of-living squeeze is intensifying faster here than in much of the Philippines.

And the numbers reveal something particularly troubling: the steep increases are hitting necessities. Transport inflation surged to 16.8 percent. Housing, water, electricity, gas and other fuels climbed to 8.9 percent. Health inflation jumped to 7.6 percent.

These are not luxuries that households can easily remove from their budgets.

A worker must still travel to work. A family must still pay its electricity and water bills. A sick child or elderly parent cannot postpone medicine simply because prices have risen. When inflation attacks these unavoidable expenses simultaneously, families have fewer places left to economize.

This is why government must resist treating the 8.4-percent figure as merely another entry in an economic report. Behind every percentage point is purchasing power being eroded. Behind every price increase is a household adjusting its budget — buying less food, postponing medical consultations, cutting transportation expenses, delaying payments or dipping into savings that may already be painfully thin.

Aklan’s situation should sound an even louder alarm. Inflation there has breached double digits at 10.7 percent, with transport inflation reaching an extraordinary 20.3 percent and food inflation hitting 10.3 percent.

At that level, the question is no longer whether families feel the increase. The question is how much longer vulnerable households can absorb it.

National and local governments must therefore determine what is driving these unusually severe regional price pressures and respond where intervention is possible. Transportation costs, electricity and fuel expenses, food supply chains, market competition and logistical bottlenecks deserve urgent scrutiny. Assistance must also be targeted toward households most vulnerable to sudden increases in essential expenses.

But short-term aid alone will not solve the problem. Western Visayas needs stronger food production, more efficient transport and logistics, reliable and competitively priced energy, better market connectivity, and economic policies that increase household incomes alongside controlling costs. Otherwise, government assistance merely chases prices upward while families remain trapped in the same cycle.

The disparity within the region is itself instructive. While Aklan recorded 10.7-percent inflation, Capiz registered only 3.8 percent. Such a wide gap demands investigation. Policymakers should identify why price pressures differ so dramatically among provinces and determine which interventions are working — or failing.

Inflation is sometimes discussed in language so technical that its human consequences disappear behind decimals and economic terminology. But there is nothing abstract about paying more for the jeepney ride to work, about an electricity bill consuming a larger share of one’s salary, about discovering that medicine costs more while household income remains essentially unchanged.

Economic growth means little to ordinary Western Visayans if their salaries buy progressively less. Development statistics ring hollow when families must continuously downgrade their standard of living merely to survive another month.

The ultimate measure of a healthy economy is not simply how much it produces, but whether ordinary people can afford to live decently within it.

Right now, Western Visayas’ inflation numbers are telling us something unmistakable: For too many families, the basics themselves are becoming expensive.

Government cannot afford to regard that as normal.

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