Economic Duality Philippines Experiences Lower Inflation Amidst Price Hikes and Power Outages in 2023

In 2023, the Philippines experienced a mix of economic challenges and improvements. The inflation rate showed a decrease, settling at 4.1% towards the end of the year. This decline followed significant price increases in rice and oil earlier in the year.

President Ferdinand Marcos Jr. implemented a price cap on rice from September 5, with prices mandated to stay between P41 to P45 per kilo. However, this led to protests from rice retailers, who argued that the cap could lead to business losses. The cap was eventually lifted on October 4.

The transport sector, particularly affected by the continuous oil price hikes, faced significant challenges. Jeepney drivers received a P1 provisional fare hike, but protests ensued as it was deemed insufficient compared to the P5 oil price increase. The income of jeepney drivers reportedly decreased due to these hikes.

Additionally, the transport sector grappled with the Public Utility Vehicle Modernization Program (PUVMP) deadline on December 31, sparking several nationwide transport strikes in the latter part of the year.

The public also contended with several power outages throughout the year, including a massive outage on Labor Day, which disrupted airport operations​​.