Cost of living in the Philippines in 2022

We have rented space in Makati and own home in Davao City.

Monthly rent has not increased for our condo, but we have a good relationship with our landlord these 13 years.

Utilities, building administration charges have not (yet) increased but there are rumors that they will.

Public transport has not increased but taxi drivers tend to be more inclined to negotiate a surcharge (against the law) for longer distances "because of the cost of fuel, Sir".

Gasoline and diesel prices are up 30% (from around P50 to P70+, depending on the area) but mostly due to the war rather than the pandemic.

LPG for our pie shop/bakery is up 20% mostly due to the war.

Grocery is a mixed bag, with imported goods increasing by more than 50%, e.g. "Granny Smith apples" used by our pie shop/bakery to manufacture Classic Apple Pies have gone from P35 to P64 per piece, and Australian Puff Pastry, used for our authentic Aussie Meat Pies, has gone from P385 to P585 per pack. Local meats have increased 10-30%; vegetables, seasonally adjusted, are about 10% up; flour and butter (that use imported ingredients) are up 20% or more.

Imported alcohol has gone up 10-20%; tobacco products about the same.

School fees may have gone up in some areas but the only one I know is a private school on Samal Island, Davao area, and that has not yet increased. Maybe next school year . . .

Leisure activities is a mixed bag because most places are just opening up and desperate to attract visitors back, so there are good deals around, that are better than pre-pandemic, if you look.

Accordingly, our pie-shop/bakery outlets in Makati City and Davao City have been forced to increase the price of some pies and pastries to accommodate the increases in costs.

Perhaps the most distressing thing is that some essential imported goods are in short supply, e.g. Vegemite, HP Sauce and Branston Pickle - I mean, what do you offer a customer who orders an English Pork Pie if you do not have Branston Pickle as a side? So we have started making a Mango Chutney to rival Sharwoods . . .

Whenever this Forum question comes up it seems to attract a series of banal responses from selected expats around the country whinging on scarcity of supply, increase in prices or because they can’t find their favourite brand of pickle. Nobody forced you to relocate to the Philippines my friends - ‘When in Rome ‘as they say.

The title ‘Cost of Living’ is meaningless on its own. It should read ‘standard of living’ ie the purchasing power of your income (earned or unearned) versus the prices of food,energy,clothing,rent etc. If your income is going up faster than the rate of inflation on a typical basket of goods in the Philippines then you are better off. If not the opposite is true.

The watch word here is inflation and whether your earnings can match the inflation rate of the country you reside in.
So here is the bad news fellow forum whinging members. Because of  world events (pandemic, Ukraine crisis) there are a series of shortages in energy (oil) and food staples (wheat) among other things that will increase prices substantively in the coming year. For the vast majority of people in the world this will mean a significant drop in their standard of living unless that income (wages,pensions) manage to keep up with prices. Some will and some won’t but even with index linked pensions there will be a time lag. So for example British expats on a state pension have an index linked arrangement with the Philippines. This year the UK state pension will increase by 3.1% which inevitably will lag the Philippine inflation rate over the next few months given the reasons above.

As they say ‘we are all in it together’ . Here in the UK inflation is set to reach 8 -10% by the end of the year. The UK population is about to experience its steepest drop in their standard of living since World War 2. A fifth of UK families will be relying on food banks to feed their families. Heaven knows how poorer Filipino families will fare in the coming months ahead. Just consider their plight next time you can’t find Granny Smith apples..

"Standard of living" is right on! You can live on 500 usd as I do or you can live on 3000 usd as many do. Depends on your taste! And whether you have a Pinay gf or wife!

capricornrising wrote:

"Standard of living" is right on! You can live on 500 usd as I do or you can live on 3000 usd as many do. Depends on your taste! And whether you have a Pinay gf or wife!

And depending much of if the Filipina is economical or not   

An economical Filipina? Now that is an Oxymoron 

Lotus Eater wrote:

An economical Filipina? Now that is an Oxymoron 

How so??

Forgive me. Let me be more specific. When they are spending your money. Get it?

Lotus Eater wrote:

An economical Filipina? Now that is an Oxymoron 

There are exceptions e g one managed even when the foreigner got transfer problem of his small SS in STARTUP of their relation not geting any in some months. Now she has managed to make they have a two storey house and a pickup car from his small SS and the access to some food they have from her family farm.
The foreigner say himself his Filipina wife is much better at economy than he himself.

There have to be economical Filipinas, because otherwice most of the Filipino ethnic group would have died out         because how many westerners can manage a family at 7000pesos per month...?

(A family I know manage at even less. They survive 14 people at 50 000p per YEAR plus they get ONE harvest per year for own food production but only half hectare and their simple home is included in the fee they pay to use that tiny farmland.  12 kids and as far as I know they were 12 from start, noone died. )

Yeah-why would they be economical when they can get everything for free just by giving up the kitty cat? haha!

Lotus Eater wrote:

Forgive me. Let me be more specific. When they are spending your money. Get it?

I get, but you’re not getting anything from them in return?

coach53 wrote:

Lotus Eater wrote:

An economical Filipina? Now that is an Oxymoron 

There are exceptions e g one managed even when the foreigner got transfer problem of his small SS in STARTUP of their relation not geting any in some months. Now she has managed to make they have a two storey house and a pickup car from his small SS and the access to some food they have from her family farm.
The foreigner say himself his Filipina wife is much better at economy than he himself.

There have to be economical Filipinas, because otherwice most of the Filipino ethnic group would have died out         because how many westerners can manage a family at 7000pesos per month...?

(A family I know manage at even less. They survive 14 people at 50 000p per YEAR plus they get ONE harvest per year for own food production but only half hectare and their simple home is included in the fee they pay to use that tiny farmland.  12 kids and as far as I know they were 12 from start, noone died. )

Now someone is finally appreciating the bigger picture 😉

onefogarty wrote:

Now someone is finally appreciating the bigger picture 😉

I am both among them defending Filipinos most, when I find others complaining unfairingly at them,
and me complaining among most too      but much of that are at officials.

coach53 wrote:

onefogarty wrote:

Now someone is finally appreciating the bigger picture 😉

I am both among them defending Filipinos most, when I find others complaining unfairingly at them,
and me complaining among most too      but much of that are at officials.

Likewise 😎

I object to your statement that my reply to the question posed was “banal” and that I should perhaps reconsider my domicile.

My reply was specific, detailed and authoritative in response to the solicitation for information as outlined.

My Filipino partner and I operate a pie shop and bakery in Davao and Makati. We have always been able to obtain the items mentioned to produce authentic pies and pastries, to please our foreign customers (and a growing list of Filipino customers) at an aforable price; and, the purchase prices, by and large, for the previous 5 years have been stable, give or take some profiteering by individual corporations, and the necessary ingredients have always been available.

The pandemic (the main subject of the question posed) caused short supply of some imported ingredients, which we managed for the most part through our international network, and some increases in cost. However, one or two items, including Branston Pickle, disappeared.

If you do not like the facts as presented then that is fine but to cast an insinuation that perhaps we may be a candidate for relocation is totally bizarre. After 25 years in this beautiful and exciting country there are no plans to move. Period. We just want to keep our customers satisfied . . . maybe you should become one of our customers and then, perhaps, you would not be afflicted by so much bile.

Or, maybe you should re-read the question posed and then you will see the accuracy and applicability of the response made, from one with long experience in Asia (40+ years) and, specifically, 25 in the Philippines.

Martyn, if I'm ever in Davao I'll check out your pie shop. i like a good pie.

Considering our family's standard of living and perspective, costs have gone up a lot. (Perhaps not more than inflation in many other countries, however.) I remember when a kg of small mackerel was Php 30/kg, ganador rice was Php 19/kg, and Tanduay 5 year old rum was Php 17 for a 375ml bottle. I Just saw someone sold one for USD 15.00 on an action site - good profit!

I wished I bought a house in Cebu City all those years ago, because city property prices have skyrocketed,  but maybe we missed some of the headaches that go with renting it out etc.

I should think the inflation has to do with Philippines being the biggest exporter of foreign labor in the world, and the overseas remittances literally support the economy. If the peso is high then purchase prices increase, and I do wonder if there's not some currency manipulation? (The peso goes up at the end of the month when OFW's get their salary, meaning a fraction less reaches the relatives.) I still convert Philippine prices to UK pounds, which helps me compare values.

OFW's probably return from other countries with an expectation of a better standard of living (my wife does). Because the Philippines imports most produced goods too, and these reflect the international market rates, they'll be a knock-on effect if commodities and production prices increase. Shipping cargo has also increased due to global supply chain delays. Also, being an archipelago, logistically it takes more resources to get products from island to island. Coconuts are still cheap, because they're about the only thing produced locally.

My brother-in-law has a little sari store and his profit margins are really low. There's a network of middle men taking a cut before the grocery items arrive to his store. So to make a living, he needs high-volume turnover.

The thing that gets me, being a rice-eating nation, is that the Philippines has all that low cost labor, on top of well-watered, fertile farmland, and yet they still need to import rice! The young men in our province would rather play basketball and sing karaoke than farm rice, it seems.

(OMO) This increase in the cost of living here is really a "non-issue" for most of us expats as we are able to make adjustments to our diet if some imported items do become too costly....but do spare a thought for the unfortunate millions here who are already on the verge of starvation....maybe by playing basketball/singing & then gathering/scavenging for coconuts/bananas help them forget about the fact that their stomachs may only have that available when its meal time.

https://newsinfo.inquirer.net/1573655/a … 20%251%24s

I tend to think if the under-employed, perhaps through no fault of their own, were incentivized to grow a food staple, there would be less starvation.

gsturdee wrote:

Martyn, if I'm ever in Davao I'll check out your pie shop. i like a good pie.

You do not have to get all the way to Davao, we have the same products available in Makati City, just Google search for 'English Pork Pie Philippines' and you will usually find us close to the top of the list

Definitely will try to find it next time we're in Makati.

gsturdee wrote:

My brother-in-law has a little sari store and his profit margins are really low. There's a network of middle men taking a cut before the grocery items arrive to his store. So to make a living, he needs high-volume turnover.

Almost all offers to retailers I have seen have had very low margins to the retailer.  Even worse for sarisaris mostly by they have even worse cost suppliers.

gsturdee wrote:

The thing that gets me, being a rice-eating nation, is that the Philippines has all that low cost labor, on top of well-watered, fertile farmland, and yet they still need to import rice! The young men in our province would rather play basketball and sing karaoke than farm rice, it seems.

Some depend of much housing are built at good farmland.
Some depend of bad equipment and/or not having knowledge/capital to get good seeds and fertilizer.
Some depend of lazyness. With water access year around they can get THREE harvests per year. I understand some have to far to water access to fetch water to a third crop.  A very poor family lease a half hectare less than 200 meters from a river, and are many people but they are to lazy to fetch water to a third crop, instead they do nothing inspite of they half starve!!!  As many Filipinps - hey even find 200 meters far to walk WITHOUT carry anything!!!

gsturdee wrote:

I tend to think if the under-employed, perhaps through no fault of their own, were incentivized to grow a food staple, there would be less starvation.

There are good exceptions, but thinking ahead isnt a strength among common Filipinos  But that make it less hard competition for them who think proper.

Other obstacles are :
/ access to capital. A mostly impossible problem for skilled poor Filipinos.  Even the two programs with money ment for such I know of, the government screwed up so became fiasko...
/ crab mentality.  =Other Filipinos hold ambitious Filipinos down.
/ "Lose face" culture make they dont want to ask, when they dont know, because that would show they dont know. They dont think of that will be noticed anyway when they screw up by they didmt know            
An even more stupid version of that is when they do understand the instructions, but dont want to follow, because they want to do OTHER to show they dont need instructions.  Nothing wrong with that IF having a better idea - I did that often myself back when I were employee and were 1.5 - 5 times faster when not following stupid instructions     -  BUT logic thinking isnt a Filipino strength so often they get things done slower or screw up when not following instructions...
/Some high education are good/ok, but some are crap.  E g not even the university specialiced in a business type* teach a very important part of managing correct!!! This missing knowledge make production MUCH slower...

*I dont tell which business type because thats the business type I am using the missing knowledge in to buy excisting businesses very cheap and less competition as well as I dont want to get competition from other foreigners in buying cheap until I have bought as many as I want to get - if ever "enough"      The goal is to get as many as my business partner can manage to lead in place and we have good workers too.

I forgot to tell.
Land suitimg good for RICE are used,
BUT there are a lot of land, good for OTHER productions, not used!!!

coach53 wrote:

Some depend of much housing are built at good farmland.
Some depend of bad equipment and/or not having knowledge/capital to get good seeds and fertilizer.
Some depend of lazyness. With water access year around they can get THREE harvests per year. I understand some have to far to water access to fetch water to a third crop.  A very poor family lease a half hectare less than 200 meters from a river, and are many people but they are to lazy to fetch water to a third crop, instead they do nothing inspite of they half starve!!!  As many Filipinps - hey even find 200 meters far to walk WITHOUT carry anything!!!

It's concerning to see former rice-farming land lying dormant, or even worse, being built upon. So. besides being a low area prone to flooding, it's also no longer suitable to farm. 

From a food security perspective it's ludicrous that the national staple is imported. If there are serious climate disruptions, or whatever results in diminished supply,  then the rice prices will go up further. Basic economics. If the poor are struggling to feed themselves now, just wait until there's a threat to the production in Thailand.

I fully agree with your comment about many Filipinos not planning ahead. The government is a prime candidate, and should be putting in place a strategy to promote rice farming, and not rely on imports. Perhaps subsidizing farming start-ups would be a start, something!

All those energetic young people, going to waste...

It's hard work, and probably not cool to be a rice farmer. That's why I believe it should be incentivized. The young guys sitting around our place certainly aren't starving (although I acknowledge Manwonder's comments that millions are and that's tragic and another issue to discuss). However, these guys like taking selfies and wearing imitation Nike shoes (of course, and why not?), but someone has to grow their food.

gsturdee wrote:

It's concerning to see former rice-farming land lying dormant, or even worse, being built upon. So. besides being a low area prone to flooding, it's also no longer suitable to farm.

Rice fields LIKE flooding 
which make it extra stupid to build houses at such land 

gsturdee wrote:

I fully agree with your comment about many Filipinos not planning ahead. The government is a prime candidate, and should be putting in place a strategy to promote rice farming, and not rely on imports. Perhaps subsidizing farming start-ups would be a start, something!

Concerning politicians, "western" politiciams are crap at thinking too   

gsturdee wrote:

It's hard work, and probably not cool to be a rice farmer.

Philippine farming have similar problem as Swedish farming had 100+ years ago
=To many farmers having to small land each.
By that most farms cant be handled effective.
In "western" messure 50 hectares is TO SMALL.
I have forgot exact statistics, but common size in Phils is 0,5 - 2 (5) hectares...

I dont know for the best rice fields,
but at lower quality fields belonging to biger lamd owners, even during covid, when many people got out of work because of that, it was problem to get people enough to do the work!!!   I suppouse because of a combination of lazy people and missing organisation to connect farmers needing workers, with people needing work.  Its tireding work but very simple so idiots can too, so thats no reason to not do such work.
(E g I know a family, I dont know how much land they have but I guess around 50 hectares average quality farmland. Whole next generation have work in city, but part of old generation live there still, have the knowledge and can lead workers but to old to do much farm work self.  They use only small part of their land because of shortage of interested workers.
An other old have problem to find workers to a big coconut farm.)

Its risk it will become even worse by most Filipino small farmers are close to retire age.  Left to see if these fields will become not in use, or if they will be merged to biger IF any younger want to, have knowledge and financial capacity...

coach53 wrote:

Concerning politicians, western politicians are crap at thinking too   

Fair point.

Sadly ...This over reliance on a services and remittances led economic growth model just doesn’t cut it....especially when a global lockdown were to happen....so yes with their abundant vacant land/labour they should have at least got their rice/coconut/banana local/export markets in order.

when you have a Pinay GF or wife, you will not just be spending for her but also for her entire family. 

samahantayo wrote:

when you have a Pinay GF or wife, you will not just be spending for her but also for her entire family. 

That's a pretty broad generalization don't you think?

Sad but pretty true.

If you feel like you need to take care of your in-laws that on you.  Personally, I deal with my in-laws the same way I deal with my children.  If they want something from me they need to earn it.  My wife is one of the hardest working members of her family and doesn't ask for much in return.  There are plenty of opportunities for anyone willing to find them.

"Give a man a fish and feed him for a day.  Teach a man to fish and feed him for a lifetime."

I can help more people by creating opportunities than by giving handouts.  If more expats have the same outlook there will be a more positive impact on the economy than just sex tourism.

samahantayo wrote:

when you have a Pinay GF or wife, you will not just be spending for her but also for her entire family. 

And if you refuse you get called a Kuripot

johncroy wrote:

"Give a man a fish and feed him for a day.  Teach a man to fish and feed him for a lifetime."

I can help more people by creating opportunities than by giving handouts.  If more expats have the same outlook there will be a more positive impact on the economy than just sex tourism.

Yes.  Originaly I planned to make one business for myself
and an other business to add work to support not aiming at any profit to me,
BUT during research I found some business ideas can solve BOTH in ONE business       so I started a such.

Lotus Eater wrote:

samahantayo wrote:

when you have a Pinay GF or wife, you will not just be spending for her but also for her entire family. 

And if you refuse you get called a Kuripot

According to LAW it isnt allowed to deny IF having own  capacity
AND IF them wanting support have done their best to solve their own problems.  This later "if" many lazy ones dont seem to know of... 

johncroy wrote:

"Give a man a fish and feed him for a day.  Teach a man to fish and feed him for a lifetime."

I can help more people by creating opportunities than by giving handouts.  If more expats have the same outlook there will be a more positive impact on the economy than just sex tourism.

I'm leaning towards your thinking Johncroy. There are some proactive ways dealing with needy relatives. Over time, I have had to categorize the persons making requests and to formulate strategies to avoid the misunderstandings, being taken, and the subsequent blame and mistrust these cause. So far I'm ahead, but not by much. Sorry long-winded. Here's a little advice to newcomers from my experience:

1. Accept cultures are so different - attitudes towards asking for financial assistance vary wildly. In Western cultures (like mine), we don't ask a friend or family member for financial help unless we're absolutely desperate, and then we're expected to repay. It's a humbling thing to have to ask for help in the first place, and an embarrassment (and unfinished business) to let a mate or family member down by not repaying.

In the Philippines, they experience no such guilt. It's apparently a "collectivist" society, therefore family members have no problem asking those with more resources to "share the blessings", and the requirement to repay can be open-ended (to be courteous), without the shame-factor if they don't repay. Some benefactors of your assistance are genuinely shocked when you remind them they have an agreed debt obligation.

A "good" Philippine son or daughter, rather proudly in fact, financially supports their parents and nieces and nephews. As their spouse, they might not differentiate between your money and their own. You always thought your wife's salary would contribute toward your nuclear family needs. Surprize! This unfortunately, is not in the fine print of the marriage contract, and takes a while (and a few arguments) to grasp.

2. Identify the "chancers", as my Filipina wife calls them. These are indirect family associates, who are not in the family hierarchy of entitled recipients. These people work on you subtly outside of the family radar, by flattering you and subtly referring to some financial desire or predicament. In the Filipino family order, this is a breach, and they will be weeded out. These are sometimes intercepted and re-routed completely outside of your awareness. (The family doesn't consider that you have the capacity to know the difference nor ability to deal with it - well not me, at least). These are truly opportunist, and if they do manage to get some money out of you, not only are they unlikely to feel embarrassed for not repaying a loan, but proud that they're more clever than you, having manipulated you out of your cash.

3. Forget about loaning money, unless the requestor puts up security. Loan-sharks exist, like 5/6 loans,  but they're professionals who keep stringent records, take asset security, and are assertive in collecting. These are the guys waiting outside the hardware store on motorbikes on payday, chasing the staff for their monthly repayment.  Generally speaking, Filipinos don't differentiate between a "loan" and a "gift", so you shouldn't either.

4. I have a solution which works for me. I put Php 100,000 into a "family loan fund". Family members can avail it for whatever needs. Requests for financial assistance are inevitable - medical bills, education requirements, business ideas. When a family member comes to me with an emergency need, I direct them to the last beneficiary of the outstanding loan.

"Sure, you can have 50k, of course you can. Unfortunately  your brother Dodong has it, do you have his number? I authorize him to pay directly to you. You are welcome. Good luck!"

Dodong gets a lot of calls, and I don't.

5. Teach them to fish. I built a sari store for a proven reliable, hardworking brother-in-law. It's my shed on my lot, and one day it can double as a car port if their little business doesn't work (so I haven't lost anything). However, in the meantime, the sari store is running, and the income generated from the Wal's ice-cream freezer alone pays their electricity and water bills, while the shop's modest income supports their family. I don't get financial requests and that branch of the family is productive, and has increased self-esteem and leant some retail management skills. My wife's mother, growing-up poor, now has a little more status in the community. They all live on our lot (which has appreciated in value over 20 years) so one day my wife might elect to sell, but in the meantime they have a home to live while look after the property. So far, seems like a win-win...

5. Remember there is genuine hardship, and we are privileged to even be here. It's a frequent thing to see genuine suffering of those who weren't given much a chance in life. the Philippines is amazing and exotic, and where I am happiest. If we can help, why not give something back?

We'd just finished building a native house. One day coming from the front gate I saw a very old lady hobbling through the coconut trees. Being a matriarchal society, she approached my wife's mother, and discretely asked for something. Analiza's mother nodded understanding, it looked serious, and her mother whispered something important to my wife. She nodded, and took me quietly around the corner.

"Here it comes....", I said, "What the hell does she want now?"

Analiza started, "You know that wall hardboard, left over from the building of the house?"

"What!", I objected. "Every damn thing that's left over they keep asking for!"

She went on, "Well, her husband died this morning.... they can't afford a coffin to bury him in. Is it okay of she uses it to make a coffin?".

What could I say? I imagined a rickety, boxlike coffin with some old guy in it, and it was literally  impossible to say "No". I learned a bit of humility that day. "Take it." I gestured.

The old lady couldn't speak English but she shook my hand intensely for a long while with both of feeble hands, smiling gratefully, like she even had something to be grateful for....

Lol! How philosophical your responses are! Keep dreaming!

Jackson4 wrote:

samahantayo wrote:

when you have a Pinay GF or wife, you will not just be spending for her but also for her entire family. 

That's a pretty broad generalization don't you think?

Yes consider the 1% that this does not apply to..

Wow Man! I read your post, and can relate to your words. But, c'mon man... You need to relax a little. I used to be like you, worrying about all the 'Macro sh*t'. Don't be a pawn in a chess game.

You have one life to live. Your universe should be your family, friends, village...

As a retailer for years, it always burns my ass whenever some stupid moron comes along and says yeah it only cost 20 cents for this or that just take as many as you want or you see people throw away perfectly good food or unused ... - @thedfords

And I find it stupid to update electronics just to get newest models to show off so some people believe I am poor because it that      E g back when computers was slow still so updates could be needed before things broke, then I had found one who made TESTS of new Macintosh computer models, so I bought his "old" for much lower price when he updated       But no need of updating now to get a millisecond faster.

Wow Man! I read your post, and can relate to your words. But, c'mon man... You need to relax a little. I used to be like you, worrying about all the 'Macro sh*t'. Don't be a pawn in a chess game.

You have one life ... - @Daytripper

Please don't say "c'mon man",  It gives me bad vibes.