Metro Manila may see higher inflation in the coming months following the recently approved P50 daily minimum wage hike, according to the Philippine Statistics Authority (PSA).
Set to take effect on July 18, the increase raises the daily minimum wage to P695 for non-agriculture workers and P658 for those in the agriculture sector, based on the Department of Labor and Employment’s (DOLE) latest order.
PSA Undersecretary Dennis Mapa noted that while the wage adjustment won’t immediately reflect in consumer prices, inflationary effects are expected to emerge within the next one to three months. He explained that price hikes typically occur in sectors that rely heavily on labor.
“We will see this maybe a month, two months, or three months after July. That may be when we observe increases in certain items,” Mapa said in Filipino during a press briefing.
Services such as salons, spas, and manufacturing—industries with high labor input—are likely to experience more noticeable price increases, Mapa added.
While the inflation rate in Metro Manila rose to 2.6% in June from 1.7% in May, other regions in the country recorded declines, highlighting the uneven impact of price movements across the country.
Mapa emphasized that the full impact of the wage hike will be difficult to quantify due to the dynamic nature of goods and services pricing. “While we are expecting an increase, the amount would vary depending on the movement of the other items,” he said.
Meanwhile, debate continues over whether to implement a nationwide wage hike. While President Ferdinand Marcos Jr.’s economic advisers have cautioned that such a move could fuel inflation and job losses, labor groups argue it is essential for more equitable income distribution.
