The value of money in the Philippines has declined in recent years due to inflation. Inflation refers to the increase in prices of goods and services over time. As prices rise, the purchasing power of money falls.

Based on inflation trends, ₱100 in 2018 now has an estimated purchasing power of around ₱73 to ₱75 today. This means the same amount of money buys fewer goods and services than it did before.

This shift affects everyday spending, savings, and the overall cost of living for Filipino households.

Summary

• Inflation reduced the purchasing power of ₱100 since 2018
• ₱100 today buys fewer goods and services than before
• Food, transport, and utilities saw major price increases
• Wage growth has not always kept up with inflation
• Savings lose value if they do not grow with inflation

What Is Inflation and Purchasing Power

Inflation is the rate at which prices increase over time. When inflation rises, the value of money decreases.

Purchasing power refers to how much goods and services a certain amount of money can buy. When purchasing power declines, consumers need more money to buy the same items.

For example, something that cost ₱100 in 2018 may now cost significantly more, reducing what that ₱100 can cover today.

How Much Is ₱100 From 2018 Worth Today

Due to cumulative inflation in the Philippines, ₱100 from 2018 is now equivalent to roughly ₱73 to ₱75 in today’s terms.

This change reflects steady price increases across essential categories such as food, fuel, and utilities.

What ₱100 Could Buy Before vs Now

The impact of inflation is easier to understand through everyday spending.

In 2018

• A full meal at a budget eatery
• Several basic grocery items
• Short-distance transportation with change left

Today

• A simpler meal with fewer items
• Fewer grocery products
• Higher transport fare with little to no change

While exact prices vary, the overall trend shows reduced purchasing power.

Why Inflation Increased in the Philippines

Inflation in the Philippines has been driven by both global and local factors.

Global Factors

• Higher oil prices increased fuel and transport costs
• Supply chain disruptions raised production and delivery expenses

Local Factors

• Rising food prices due to supply constraints
• Increased transport costs linked to fuel prices
• Currency movements that made imports more expensive

These factors combined to push up the cost of living for many households.

How Inflation Affects Savings and Why Additional Income Sources Matter

Inflation reduces the real value of savings over time. When money is kept in low-interest accounts, it may not grow fast enough to keep up with rising prices. As a result, the purchasing power of savings declines.

For example, if inflation is higher than the interest earned on a savings account, the actual value of that money decreases even if the balance stays the same.

Because of this, relying on savings alone is often not enough to preserve wealth in an inflationary environment.

This has increased the importance of additional income sources. Many individuals now look for ways to grow their money beyond traditional savings, including side businesses, freelance work, and participation in financial markets.

One example is forex trading, where individuals trade currencies to potentially benefit from price movements. While it offers opportunities for income, it also involves risk and requires proper knowledge, strategy, and risk management.

The broader trend shows that as inflation rises, people are more likely to explore multiple income streams to protect and grow their financial position.