Why We’re Sold on the Illusion of Plenty

Recently, I went to a neighborhood store to buy some vegetables. I saw that they were also selling Lacatan (Cavendish) bananas, so I bought five pieces. As always, I asked first how much a kilogram of bananas cost. The seller said it was Php90 (about US$2). I said, “it’s expensive (Ang mahal!)”, but she replied, “They’re big anyway, and fleshy. (Malaki naman eh, saka malaman)” As I held a piece of banana… well, it wasn’t bigger or fleshier than an average Lacatan.

Too much ado over …. bananas

Being a foodie, it interests me to see new food shops around the city opening up — is it good or bad? Possibly good for the job market, since they create more opportunities in the service sector. But as a consumer, I can’t help but wonder about the value of the peso.

On Instagram, I see fancy donuts — all gooey and iced — barely the size of a palm, selling for Php75 (about US$1.30), or nearly an hour’s worth of labour. Then there’s that flat disk of a chocolate chip cookie, barely three inches in diameter, being sold at a take-away corner in a mall for Php130 (about US$2.30).

Obviously, we’re not getting real value for our money anymore — a whole day’s work barely covers half a dozen overpriced, overhyped pastry, or about five kilograms of bananas.

Economically strategic for others, tragic for many

Why is this happening? Well, let’s say, conveniently, it’s inflation. Globally, inflation is rising. But in the Philippines, even inflation is hitting us differently.

Below are key types of inflation*

(1). Demand-pull inflation occurs when demand for goods and services exceeds supply, often due to rapid economic growth or sudden surges in demand, such as during a war or natural disaster.

(2). Cost-push inflation occurs when production costs—such as raw materials, labor, or energy—rise, leading to higher prices for goods and services.

(3). Built-in inflation occurs when people expect prices to rise and adjust wages or prices in advance, creating a cycle where inflation continues even without a clear economic cause. (Editor’s note: Could this be the result of consumers being conditioned to accept that rising prices are caused by global events, rather than by built-in inflation?)

*Source: Freedonia (https://www.freedoniagroup.com/blog/inflation,-shrinkflation,-skimpflation,-and-excuseflation-what-you-need-to-know)

Inflation survival tactics: Real or Foolery?

Haven’t we noticed how our supermarket supplies have not only increased in price but also shrunk in size?

The local sausages we used to buy were longer than my middle finger; now, they’re the size and width of my ring finger. Jumbo-sized hotdogs have shrunk to regular size. Sardines that used to have four tiny fish in a can now have only three or with an extra half-sized fish.

With the shrinkage of the main product, I wonder how manufacturers are still able to stay true to the weight indicated on the packaging.

Amid ongoing price hikes, companies have adopted various tactics that affect what consumers get for their money. These include shrinking product sizes, cutting corners in quality or service, and in some cases, raising prices under the broad justification of inflation**—responses that take the form of shrinkflation, skimpflation, and excuseflation.

Shrinkflation happens when companies reduce the size or quantity of a product while keeping the price the same.

Adding more sauce to a sardine can to make up for fewer fish; changing the packaging from a can to a pouch with less quantity but the same price; or even reducing the package size. Don’t be surprised if your instant coffee packet looks smaller now or if your soda comes in a smaller bottle. The changes are often subtle and go unnoticed.

Shrinkflation = Quantity-based reduction + Same price

Skimpflation occurs when companies reduce product or service quality while keeping prices unchanged. This can involve using cheaper ingredients, lowering manufacturing standards, or cutting back on included services.

Example: Your cheese spread is now “more spreadable”—not for your convenience, but because it contains more water or cheaper oil. Or your beauty clinic no longer includes the spa treatment with your usual nail services, yet the price remains the same.

Skimpflation = Quality-based reduction + Same price

Excuseflation is when companies raise prices and blame inflation, even if it’s not the real reason. As noted by Freedonia, a business might exploit consumer expectations by increasing prices—say, by 10%—and attributing it to inflation.

In my own experience with some grocery items, I’ve noticed either a decline in quality or a reduction in quantity—and still an unjustified price increase, often within the Php1–Php10 range. Even when the cost of some inputs hasn’t risen significantly, prices continue to climb.

Excuseflation = + Budol alert!!!

**Source: Freedonia (https://www.freedoniagroup.com/blog/inflation,-shrinkflation,-skimpflation,-and-excuseflation-what-you-need-to-know )

Prices go up, up, and away!

I have no doubt that prices will neither go down nor slow down, and the purchasing power of the people remains stagnant — if not declining.

When I started working two decades ago, my basic salary was around Php10,000 to Php12,000 (approximately US$200 in today’s forex).

According to the Philippine Statistics Office data, basic salary in 2001 was between Php220 to Php223.6

Fast forward to today, about 20 years later, and there are still workers being paid Php10,000 or Php12,000. With the rising cost of food, electricity, water, communication utilities, rent, healthcare, and child support — how can they even survive for a week?

According to the World Bank’s Inflation Calculator, a Php100 peso item in 2000 would have cost Php267.41 at today’s inflation, with 167.41% increase in prices in 25 years.

Nosce quanti aestimeris (Know your worth)

Now, with the 20% tax on savings income under the Capital Markets Efficiency Promotion Act (CMEPA), some quarters are politicising it — depending on which side of the fence they’re on. One faction decries it; the other defends it. My only apolitical point here is that the government is now horning in on our personal financial decisions. I wonder what they’ll do next. But that’s just me. I may be wrong.

If only we could all reason not from political loyalties, but from our own needs and basic rights. We need to learn to express what we need without attaching it to political leanings. We must pause and ponder: What is my value? What is my worth? Knowing this from the start keeps us from blindly following those who may not serve our best interests.

Selling point

Now, let us ask ourselves: Is Php695 (this year’s minimum daily wage rate for non-agricultural) the correct price tag for a day’s labour — elbowing through traffic, squeezing into packed public transport, eating unhealthy food or skipping meals just to save a few more pesos to bring home — and making other small sacrifices just to get through the daily grind?

Can we still tell when something sold to us as “big (malaki)” is actually small (maliit), or when “fleshy and thick (malaman)” is actually thin (manipis) — especially in the context of our bare minimum needs? Or are we simply accepting the way things are now because we’ve lost our grasp of proportional reasoning and size perception (which, honestly, I wouldn’t be surprised if they blamed on too much screen time instead of consumer conditioning), or are we just too exhausted to argue?

Only you can decide.

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