Hard times force more households to reduce food consumption

MANILA, Philippines - Amid soaring food prices, more Filipino households have reduced their food consumption and/or expenses, a new survey showed. Pollster Pulse Asia, Inc., in a report released Wednesday, said two-thirds of households (66%) have cut back on food consumption and/or expenditures in the last three months. The latest figure is an increase of 22 percentage points over the March 2008 figure of 44%, the pollster said. The survey results were released a day after the National Statistics Office announced that inflation had hit a record-high of 12.2% in July due to rising food and fuel prices. Malacañang said the survey results reflect "a serious concern" but maintained that such is expected given the rising prices of commodities worldwide. "We do not need a survey to determine such situation. We all know that fuel prices went up. We know there is a problem as inflation had hit 12.2 % last month. This is being addressed by the government," said Press Secretary Jesus G. Dureza. "We view these with very serious concern. That is why the President is hastening the implementation of the national social welfare program so that the government can help the poorest of the poor," said Presidential Management Staff Head Cerge M. Remonde. Mr. Dureza admitted that the survey result can serve as a challenge for the government to perform better but is still skeptical about it. "It’s a challenge to the President and the Cabinet and the whole machinery of government... Survey results are guides but we should not take them ex cathedra as gospel truth," he said. Widespread outside NCR In a nationwide survey conducted from July 1 to 14, Pulse Asia said reduced food consumption or spending is more widespread (from 61% to 75%) in areas outside the National Capital Region (NCR) and among socioeconomic Classes D and E (66% and 71%, respectively). "Nevertheless, NCR and class ABC households also feel the impact of double-digit inflation rates; about half of them also say that they have been reducing food consumption," the pollster said. Across the regions, the percentage of households who had spent less on or consumed less food in the past three months were 47% in NCR, 70% in the rest of Luzon, 75% in the Visayas and 61% in Mindanao. Among socioeconomic classes, 71% among the poorest Class E cut their food expenditure or consumption. It was at 66% among those belonging in Class D and at 48% among those in Class ABC. The survey also showed that one in four households (24%) say that they cut back on rice consumption/spending. About half of the same households were able to buy subsidized National Food Authority rice at P18.25 per kilogram, Pulse Asia said. Across the regions, the percentage of those who cut their expenditure on or consumption of rice were 21% in NCR, 26% in the rest of Luzon and in the Visayas and 19% in Mindanao. Among the socioeconomic classes, it was at 19% for those in Class ABC, 22% for those in Class D and 29% among Class E. The nationwide survey also specified other items, which the respondents had consumed less of or spent less on in the last three months. It showed households have also been reducing consumption of other commodities and services. About half of households (53%) said they have reduced electric consumption, while about a third (32%) say they had reduced their expenditures on transportation and transport fuel and on liquefied petroleum gas. Last March, the percentage of households who had reduced their electric consumption was 59% while the percentage of household who had cut on their expenditures on transportation and transport fuel was 19%. Among households with cellular phones — around 60% nationwide — about a fifth (22%) have lessened their expenditures on cellular phone load. Pulse Asia said this figure is "essentially unchanged" from the March 2008 figure of 28%. The survey also showed the national percentage of households that consumed less or spent less on outings and recreation (18%), water (16%), education (14%), medicine and other health needs (13%), house rental (3%) and other items (1%). Only 1% of the respondents said they did not consume less or spend less for any item. On the way households cope with higher prices, 19% had sought additional sources of income, 20% borrowed money and 10% reduced their savings. Around 26% said they had reduced the consumption of other products apart from food and education while 3% pawned or sold things to meet their expenses. Some 3% of households claimed the price increases did not have much effect on their families as their incomes could handle the price increases. The same percentage said they asked help from their relatives, friends or neighbors. Meanwhile, 1% said they had one or more children stop schooling. Less than 1% or 0.3% had their children transferred to public schools from private school. The same survey showed that 3% of households, or 530,000, had one or more of their members go without food for at least one whole day in the month preceding the survey, primarily because the household had no money to buy food. Pulse Asia said 90% of these households belong to Classes D and E, the vulnerable poor and poor groups. - BusinessWorld