Peso’s purchasing power drops to 75 centavos from 2018 level

QUEZON CITY, April 8 ------ The value of one peso in 2018 has dropped to its lowest level to .7519 centavos in March 2026.

Latest data showed the peso’s purchasing power fell to 0.7519, its lowest level in recent years, as inflation continued to rise. The Philippine Statistics Authority (PSA) reported inflation in March 2026 at 4.1 percent, the highest in more than a year.

National Statistician and Civil Registrar General Usec. Claire Dennis Mapa said the decline reflects the direct impact of rising prices on consumers. “Yung purchasing power of peso natin is inversely related sa inflation rate. Pag tumataas inflation bumaba ang ating purchasing power. Yung average estimated purchasing power of peso nitong March as nasa .75,” Mapa said. This means that what P1 could buy in 2018 now only buys about three-fourths of the same goods and services.

IBON Foundation Executive Director Sonny Africa said sustained inflation continues to erode the peso’s value over time. “Dahil ang baseline ay one peso noong 2018, dahil hindi naman flat ang inflation, every year habang tumataas ang inflation, every month habang nagkaka-inflation, na-e-erode ang peso,” Africa said.

Both the PSA and IBON warned that inflationary pressures may persist in the coming months, partly driven by global factors such as tensions in the Middle East that could push fuel prices higher. “Definitely we’re seeing higher numbers in April. We’ve had series of price increases,” said Mapa who added that he hoped inflation will stabilize.

Africa shared this outlook.

“Definitely things are going to get worse, walang duda in the next 2, 3, 4, 5 months, kahit na mahinto yung actual conflict, hindi kaagad babalik sa normal o sa dati ang presyo.” To cushion the impact, IBON urged the government to remove excise and value-added taxes on oil, expand subsidies, and provide more financial assistance to vulnerable sectors. The group also proposed imposing a wealth tax on the country’s richest individuals to help fund social support programs.

Source: news.abs-cbn.com