‘Sari-sari’ store prices up 11% since 2023

NEIGHBORHOOD STORE A man watches over a neighborhood general merchandise store.—INQUIRER FILE PHOTO

MANILA, Philippines — While the country’s headline, or overall, inflation has steadily declined for months — even hitting a six-year low in May — Filipinos at the grassroots level continue to feel the pinch as prices in “sari-sari” stores remain on the rise, according to a study.

According to the Philippine Statistical Authority (PSA), headline inflation slowed down to 1.3 percent in May 2025 from 1.4 percent in April, the lowest inflation rate since November 2019 at 1.2 percent.

This brought the average inflation rate from January to May 2025 to 1.9 percent. In May 2024, the inflation rate was higher at 3.9 percent, the PSA said in its last inflation report on June 7, driven by slower increases in the PSA’s index of housing, water, electricity, gas and other fuels.

But local tech startup Packworks said in an analysis of its own data on Friday that price adjustments in sari-sari, or neighborhood general merchandise, stores across the country have shot up by at least 11 percent since 2023.

Andoy Montiel, Packworks chief data officer, did not explain the disparity in the data, but suggested that even a subtle increase in wholesale price could burden financially vulnerable households, as sari-sari stores cater to around 94 percent of Filipino consumers.

“Sari-sari stores are known for their thin profit margins. While they operate as viable businesses, they also serve as extended pantries and community hubs for their neighbors. Even a slight increase in wholesale prices reveals how vulnerable micro-retailers are to cost shifts upstream,” he said.

“This creates a ripple effect, especially in low-income communities where these stores are the primary source of daily essentials,” Montiel added.

Packworks said its data were collated and analyzed from a network of more than 300,000 sari-sari stores nationwide covered by its micro-retail analytics platform Sari IQ.

READ: Inflation cools to 1.3% in May, slowest pace in nearly 6 years

Higher store prices

For instance, they found in at least five regions that the retail price of a 50-milliliter bottle of Johnson’s regular baby oil has climbed to P49, up 17 percent from P42. A 100-gram pack of Tender Care baby powder has logged a higher price increase of 25 percent to P50 from the previous P40.

Lala Fish Crackers Classic, a popular snack item in neighborhood communities, is now priced at P23, up 27 percent from P18. A 150-gram pack of Fres candy is also costlier by 16 percent in at least nine regions, with a price tag of P42 versus P36 from 2023.

According to Packworks chief executive officer Bing Tan, the data on the ground “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,” Tan said.