While on our bike trip I heard about inflation all over the place.
Gas is $8-9/gallon!
Inflation is affecting everybody, including your OFS.
I got this email from Tiffany.
Sorry to bother you on your holiday, but I got a rather urgent note from my VAs today about their cost of living increases, and wonder if you are hearing about this from others?
I’m wondering how extreme the effects could be for them?
Are you planning a newsletter on this (asap) perhaps?
The insane inflation and cost of fuel is really affecting our business here in North America too, but we will be ok.
Here’s part of what they sent me, I’m glad they felt they could approach me on this:
“There has been a rampant price fluctuation happening here in the Philippines because of the Fuel price Hike that started on June 7, 2022.
Everything is affected since most companies here in all aspects run their business using Fuel,
and I think prices of Rice, electricity and other utilities are expected to rise by next week.”
I asked my OFS, Julia, and here’s her report on the situation:
Since January 2022, the Philippines have been experiencing inflation which contributed to the rising cost of commodities.
One of the first things to feel the impact of the rising fuel prices is food, specifically agricultural products (meat and vegetables). Food has been getting more expensive or shrinking in size. Fuel and food prices are directly related here in the Philippines because most agricultural products are transported to markets and food processing plants by land. Fuel cost is added to the wholesale price when these products are brought to market in different cities. The further they have to transport these products, the higher the cost.
Electricity costs in the Philippines have always fluctuated based on market rates, but it’s not solely influenced by fuel prices because we buy electricity from multiple sources (coal, natural gas, renewables). Historically, rising electricity costs are felt more during the summer months, when there’s an increase in demand and low water supply is affecting hydroelectric and geothermal power sources.
Commuting costs has stayed relatively stable because the transportation board (LTFRB) has strictly regulated fare even with rising fuel prices. It’s only recently that they allowed a provisional fare increase of $0.02 on the base fare for jeepneys. Buses and taxis have not been given permission to increase their fare yet but operators continue to campaign for it. Ride share and motorcycle ride share services have not increased their fare but are able to change their booking fees.
The cost of internet has not increased and continues to be fixed within the plan period. Even with prepaid plans, the price is fixed based on consumption/availed data promo. Water is also a fixed cost.
The government has started gas subsidies to public utility vehicles to help manage fuel costs. The Philippines also has rice reserves that are released in times like this. But the cost of everything else will continue to rise.
At OnlineJobs.ph we’re feeling inflation too. We’ve decided not to raise prices for now.
We just want you to hire the help you need. We want to make it easy. We want it to be reasonably priced.