Cost of living

[stevewool]

Have you notice that your weekly or monthly bills are climbing and even those annual bills they too may have gone up, so can i ask if that is the case how much have they all gone up since last year or since you have been there in the Philippines, or have you not noticed.

As many may know we are about to make our next plans and like anything its good to have lots of advice and information about what could happen in the near future

[Old55]

I visited Cebu last year was surprised how much more nearly everything cost. My wife just returned was shocked at the prices now.

 

[Clermont]

Use figures to work out whether you can still afford the PI's. Budget of say 80 k peso a month + 6.5 per annum inflation = .54 per month= new budget 80432 peso.  You'll just have to be careful not to waste any beer each month, 432 peso equates to about 6 beers a month. 

[Tukaram (Tim)]

I have not noticed much increase.  Groceries have gone up a little, I guess, but not enough for me to adjust my budget.  Gas has gone up dramatically in the last 18 months, but I do not drive.  I expected all prices to go up as the shipping cost went up... but so far no big deal. 

The favorable exchange rate for US dollars has more than offset any inflation.   Over the last 6 years meat prices have gone up about p25 a kilo, but the exchange rate went from 42 to 53.  I like it.

[Mike J]

2 hours ago, Clermont said:

Use figures to work out whether you can still afford the PI's. Budget of say 80 k peso a month + 6.5 per annum inflation = .54 per month= new budget 80432 peso.  You'll just have to be careful not to waste any beer each month, 432 peso equates to about 6 beers a month. 

Unfortunately inflation does not work that way.  You have taken the inflation rate and divided it by 12

6.5 percent annual inflation would have the following impact on a 80K budget.

80,000 x 12 = 960,000 annual budget

960,000 x .065 = 62,400 peso increase for the year

62,400 / 12 = 5,200 peso increase per month (about 100 beers per month)

80,000 + 5,200 = 85,200 new monthly budget

If we were to use your calculated value of 80,432 per month we get the following results for an annual inflation rate.

80,000 x 12 = 960,000 old annual budget

80,432 x 12 = 965,184 new annual budget

965,184 - 960,000 = 5,184 yearly increase due to inflation

5,184 / 960,000 = .0054 annual inflation rate of .54 percent which is 1/12 of the true 6.5 rate.

So we are faced with scary but true inflation rate of 1200 beers per year.  My asawa buys my SM by the case as 25 peso per bottle (day before yesterday price).  If I were a VERY serious beer drinker on a fixed peso income, the inflation rate would reduce beer intake by 2,496 bottles per year.  Fortunately it takes me about 6-8 weeks to finish a case so I should be okay in the near future.

 

 

 

[BrettGC]

As an Aussie you can add to this the slowly but steadily tanking AUD against the USD and resultant flow-on to the PHP.   As the USD rises world-wide, this places more inflationary pressure in PI pushing the AUD down against the PHP.  This is further aggravated by the US/China "trade war" forcing the AUD against the USD due to China being Australia's biggest trading partner.  In the last year the USD has gone from 51 to 54 PHP whereas the AUD has gone from 41 to 38.  These are official rates of course, what you'll actually get can vary wildly as we all know but it's on the same curve. 

Just food for thought for those that receive their income in AUD.

[Jack Peterson]

8 minutes ago, BrettGC said:

Just food for thought for those that receive their income in AUD.

Sad to hear this but on the brightside ( For me and many Brits) in at 71  the Pound is still holding somewhat, Pension due Tomorrow ( we are paid 4 weekly on State pensions)   so if it holds it may give a little boost to my day out with the   Lads 

[scott h]

4 hours ago, Tukaram (Tim) said:

but so far no big deal. 

I am with Tim, any inflation has really been offset by the rise in the dollar. We don't drive enough to worry about gas

[jimeve]

53 minutes ago, Jack Peterson said:

Sad to hear this but on the brightside ( For me and many Brits) in at 71  the Pound is still holding somewhat, Pension due Tomorrow ( we are paid 4 weekly on State pensions)   so if it holds it may give a little boost to my day out with the   Lads 

Get the beer in mate  

[Clermont]

4 hours ago, Mike J said:

Fortunately it takes me about 6-8 weeks to finish a case so I should be okay in the near future.

 

 

4 hours ago, Mike J said:

960,000 x .065 = 62,400 peso increase for the year

Mike that multiply should be a + and you have added the full 6.5% to the monthly budget, correct percentage, .5416==== per month. That post was a tongue in cheek post only.