FILIPINO consumers continue to face rising costs for everyday goods at neighborhood sari-sari stores—even as the country’s inflation rate cools to a six-year low—highlighting a widening gap between macroeconomic indicators and on-the-ground retail realities.
New data from Filipino tech startup Packworks revealed that prices for key fast-moving consumer goods (FMCGs) have continued to climb in sari-sari stores across the Philippines. Despite headline inflation falling from six percent in 2023 to just 1.3 percent as of May 2025, price increases for staples such as baby care products, snacks and rice remain widespread.
The report, based on over one million monthly transactions across Packworks’ network of 300,000 sari-sari stores via its mobile app and analytics platform Sari IQ, found that some product categories have seen average price hikes of 11 percent or more nationwide.
Among the steepest increases were baby products. These price increases were observed in at least five regions, including Ilocos (Region 1), Central Luzon (Region 3) and Mimaropa (Region 4-B).
Prices in the snacks and confectionery category have also surged. These hikes were recorded across Regions 2, 4-B, and as many as nine other regional markets.
“Sari-sari stores are known for their thin profit margins,” said Andoy Montiel, chief data officer at Packworks. “Even a slight increase in wholesale prices reveals how vulnerable micro-retailers are to cost shifts upstream. This creates a ripple effect, especially in low-income communities where these stores are the primary source of daily essentials.”
That effect is particularly significant given that 94 percent of Filipinos rely on sari-sari stores for their everyday needs.
While inflation at the national level has steadily declined — from 3.2 percent in 2024 to 1.9 percent in early 2025 — Packworks’ findings suggest many micro-retailers and their customers continue to absorb cost pressures at the grassroots level.
Even rice, the country’s staple food, has not been spared. A five-kilogram pack of premium rice rose from P235 in 2023 to P295 in 2024, before dropping slightly to P285 in 2025 following the Department of Agriculture’s price caps on imports. Despite the slight relief, prices remain well above the national average of P50.54 per kilo for well-milled rice.
The pricing data also revealed changes in tingi-tingi (retail-packaged) rice sales, where small-volume portions continue to be sold informally to meet neighborhood affordability needs—often at higher per-kilo rates due to repacking and logistical costs.
“Sari-sari stores are more than just retail outlets, but a lifeline for millions of Filipinos,” said Bing Tan, Packworks chief executive officer. “Our latest analysis reveals gaps between national macroeconomic reports and the grassroots micro-retail reality. These insights can act as early indicators to inform distribution chains and policymakers of where support and aid are most needed.”
As government inflation figures show broad-based easing, the disconnect between macro data and sari-sari store shelves underscores the challenges in achieving inclusive economic relief—especially for low-income households and small retailers who remain most exposed to rising input costs. / KOC