A survey points to price freezes as the strongest signal of customer support, while a weak peso and persistent inflation raise costs for Philippine businesses.
For Philippine brands trying to keep customers, a price freeze may carry more weight than smaller packs or promotional deals. That’s the clearest signal from an October study by Organic Intelligence, and it arrives as inflation and peso weakness put pressure on both household budgets and business costs.
In a survey of 800 urban Filipinos conducted in May, 27% said a price freeze would make a brand feel genuinely on their side. Smaller tingi sizes came next at 16%, followed by free shipping at 14% and promotional bundles at 12%. The researchers later told Rappler that a price freeze campaign could build loyalty among customers focused on value.
The responses point to financial strain well beyond shopping preferences. Some 42% of respondents said they had borrowed to cover essentials such as food and transportation, while 45% said inflation had sapped their motivation to get ahead.
READ: The urban Filipino is tired, cash-strapped, and sick of the ‘resilience’ excuse
Costs are rising as purchasing power weakens
September inflation hit 7.2%, with October figures due on November 5 and further acceleration expected. For companies, the question is how much of the added cost they can absorb before passing it on to customers already stretched thin.
The peso closed at a record low of P64.17 to the dollar on Tuesday, October 27. That came five days after the Bangko Sentral ng Pilipinas (BSP) raised its policy rate by 50 basis points to 5.50%, following four consecutive increases this year. The central bank also lifted its 2027 inflation forecast from 5.4% to 6%.
BSP Governor Eli Remolona Jr. said the central bank would generally allow the peso to find its own level, stepping in to soften excessive moves that could aggravate inflation. Former BSP deputy governor Diwa Guinigundo has linked the currency’s decline to weak capital flows, the balance of payments deficit, limited foreign investment, and investor uncertainty over corruption allegations and the ongoing impeachment trial.
The external accounts show why pressure may persist. The Philippines posted a $9.1-billion balance of payments deficit in the first nine months of 2026, up from $5.3 billion in the same period a year earlier. Foreign portfolio investment shifted from $4.58 billion in net inflows a year earlier to $4.25 billion in net outflows from January through August.
Imports add to demand for dollars. Mineral fuels and related products alone rose $2.56 billion year on year in the first half of 2026. The BSP expects an $8.5-billion balance of payments deficit and a $19.4-billion current account deficit in 2027.
Foreign exchange reserves fell from $104.8 billion in August to $99.5 billion in September, partly reflecting BSP currency operations, valuation adjustments, and government withdrawals. The reserve stock still covered 6.2 months of imports.
READ: [READOUT] What a stickier inflation wave could mean for businesses
Currency exposure will separate winners and losers
A weaker peso raises costs for import-dependent manufacturers, retailers, airlines, and companies carrying unhedged dollar debt. Exporters and business process outsourcing firms that earn dollars and pay expenses in pesos may benefit. Higher rates create another constraint by making new loans and refinancing more expensive.
Bank of the Philippine Islands lead economist Emilio Neri Jr. sees prolonged inflation as a potentially larger drag on growth than higher interest rates. Household consumption accounts for around 70% of the economy, leaving businesses exposed if rising prices further erode spending.
The next major gauge is the third-quarter 2026 GDP release, scheduled for November 9. Growth slowed to a disappointing 2.3% in the second quarter.
Capital raising continues despite the pressure
Companies are still moving ahead with fundraising plans. Mynt, parent of GCash, completed the largest IPO in Philippine history on October 20. The Philippine Stock Exchange put the offering, including the overallotment, at P60.9 billion.
Cebu-based Aznar Shipping is preparing a smaller offering of up to P737 million, targeting a December 18 listing to fund fleet and shipyard expansion.
For consumer-facing firms, the survey offers a practical signal: customers under financial strain may respond most to predictable prices. Whether companies can hold prices while their own costs rise will depend on their exposure to imports, financing, and dollar revenues.
Readout is a content series from data consultancy The Nerve, combining reporting and data analysis to track shifts in Philippine industries, demand, and consumption.
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