Your post got me to doing some thinking about Philippine
inflation and the lower exchange rates. I remember I was once told
by a government employee , I think he worked for COA, about the way
they come up with the Philippine inflation rate, I dont remember
exactly how it worked but remember it was very strange as many(most)
basic expenses wherent taken into consideration, the true inflation
rate is very high, Maybe someone else on the list will know more and
can explain it better. I just remember him telling me the true
inflation rate was something like 20%. For a long time expats where
able to keep thier living standards in pi because the exchange rates
along with the pension cost of living adjustments balanced things
out really well and generally you came out ahead actually, this is
no longer the case.
Anyway I called a filipino friend in the Philippines to ask
just how much the cost of things have changed in the almost 2yrs Ive
been away. He told me another filipino I know is now renting the
same house I used to rent so I called him to get a better
understanding of the topics I was wondering about. The guy, an Atty
and City councilor, has basically the same apliances and lives the
same lifestyle I lived so this is will pretty accurate, and the
prices are based on thejournal I kept the entire time I lived there
and include all basic monthly exspenses.
Im making this list based on the prices things when I left as
the prices when I arrived where crazy cheap, like 1500php electric
bills. Anyway things seem to have increased drastically but
hopefully some other posters can comment if I make any errors. Many
items we paid a year advance as we tried to pay as many things up as
possible using the yearly us tax returns.
Rent:3,000 (land lord asked 4500 but we bargained for year advance)
New guy pays: 6,500
Electricity: 4,500
New guys says 7,500 (has basically same appliances minus 2)
Phone Bill: 385 (basic service)
New guy pays 500+
Cable: 300 per month (we got some kind of discount for year advanced)
New guy pays 525 monthly
Internet: 650 (Dial-up)
New guy didnt know as he has DSL.
Helpers: 2,400 (2 helpers at 1,200 each)
New guy Pays 4,000 (he says most helpers ask 2,000
Water Bill: 300/350
New guy Pays 500/550
HOA FEE: 120 per month (this paid for guard ect)
New guy Pays 200
Gasul: 435
New Guy Pays 635
Car insurance: 5,000 per year (roughly 416 per month)
New guy didnt know as he drives without insurance
Yard keeper with big scissors: 100 per visit (once weekly)
New guy says noone will hardly work for less than 150 now
he says most ask 200
Bottled water: 1000 per month (50 per bottle)
New guy didnt know as his wife pays it
Food cost: was hard to compare because ppl eat diffrently but if its
any help our faverite hamburger place raised thier cost by 35php to
cover added costs, some of this may be due to gasul and other
increases though.
Transportation cost if public transport- was 4.5php per ride, new
guy says its now(he thinks) 7php per ride
I then figured out the exchange rate diffrences based on the
amount we usually spent on average, 1200usd per month. I figured it
at 55/1 exchange for past exchange as it seemed to remain there for
a long time. At 55/1 1200 was 66,000php. Currently I figured it at
its realtime of 40.50 and minused .50 per dollar as thats seems to
be what I rember the money changers taking (I may be wrong as I
didnt write that in my journal) Anyway if .50 is correct Id have
lost 18,000php per month, add the tottal expenses above and youll
see that 16,000 more than covers all basic living expenses!!!!
Actually, it factored out to having lost entire basic living
expenses and 835usd per year before inflation. I havent figured out
how much would be lost after lower exchange and including the
inflation, but its very bad. I figure My dollars would have lost 60%
+ of its buying power after inflation had I stayed in PI.
Future Forcast: Im not in anyway a financial expert but unless
something drastic happens it doesnt look good.
Justin
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