May 18, 2026
MANILA – In Sta. Rosa, Nueva Ecija, P1,000 worth of groceries no longer fills a cart the way it used to.
For Rustom Sto. Domingo, every trip to the grocery now comes with quiet frustration. The canned goods, soap and daily essentials that once lasted his family for weeks disappear much faster today.
“Before, you can buy a lot with P1,000,” Sto. Domingo said. “Now, it can only buy almost half.”
The Philippine peso has weakened against the US dollar in recent months, increasing the peso value of remittances sent by overseas Filipino workers (OFWs). But for many families, the extra pesos reflected in remittance receipts disappear almost as quickly as they arrive, swallowed by rising prices of food, fuel, electricity and transportation.
On Thursday, the peso fell to a record low of P61.64 against the US dollar—its weakest level ever—underscoring pressure from elevated US interest rates and the country’s dependence on imported fuel and goods. The peso had already breached the P61-per-dollar level in late April before sliding further.For Sto. Domingo’s household—partly supported by his sister, Editha Gammad—the stronger dollar has brought little relief.
A blessing, a burden
Compared to last year, Gammad said the amount she sends home has remained the same at around $500 to $1,000 monthly.
“However, the dollar-to-peso equivalent is higher now because of the stronger US dollar,” she said.
Gammad, who has worked for 11 years as a triage registered nurse in New York City, said the stronger dollar initially seemed like good news for families receiving remittances in the Philippines.
“With the stronger dollar today, the remittance may appear to go further in the Philippines because of the higher dollar-to-peso exchange rate,” she said.
“However, the benefit is often offset by the rising prices of gasoline, electricity, transportation fares and groceries,” she added.
The remittances help cover household expenses and tuition worth around P30,000 per semester for a family member in Nueva Ecija.
But even thousands of miles away, Gammad said budgeting has become more difficult because of rising living costs in the United States.
“Yes, my living costs in the US have increased since last year, especially the rising cost of gasoline and groceries,” she said.
She described the stronger dollar as both a blessing and a burden.
“It is an advantage when sending money to the Philippines because the exchange rate is higher,” she said.
“But living and spending in the US has become more challenging when it comes to budgeting.”
Back home in Nueva Ecija, Sto. Domingo said household expenses have steadily climbed over the past year.
Difficult budgeting
“The exchange rate was low before, but prices here in the Philippines were also low,” he said. “Now the exchange rate has increased, but almost all prices here have also increased.”
Electricity bills, transportation costs and grocery expenses have all risen sharply, with some monthly expenses nearly doubling.
The family has since been forced to make painful adjustments.
Sto. Domingo said the grocery budget that once covered canned goods, soap and food items no longer stretches the way it used to. Among the most noticeable increases were canned goods and fuel prices.To save money on gasoline, the family has started limiting unnecessary trips outside their barangay.
“Every time we leave Sta. Rosa or even when we need to go somewhere here in town, we think hard if it is really necessary,” he said. “Fuel costs hurt our pockets.”
Still, Sto. Domingo said the remittances remain essential to keeping the household afloat.“It is still a big help,” he said. “For the grocery, bills.”
Overtaken by inflation
Sonny Africa, economist and executive director of Ibon Foundation, said many OFW families are experiencing the same reality: whatever gains they get from a weaker peso are quickly overtaken by inflation.
Africa explained that while a family receiving $100 may now get more pesos because of the exchange rate, the cost of basic goods has risen even faster over the same period.
“If the family gained around P344 because of peso depreciation, inflation is going to make them spend around P411 more for the same basket of goods,” he said. “So they are still losing money.”
Africa said the Philippines’ heavy dependence on imported oil, food and manufactured products makes peso depreciation inflationary.
“Every time the peso depreciates, inflation always spikes,” he said.
He also warned against viewing remittances as a long-term solution to economic insecurity, saying they can create what he described as a “false sense of security” for both families and the government.
At the household level, Africa said remittances may temporarily improve living conditions, but many families remain dependent on relatives working abroad instead of finding stable, well-paying jobs in the Philippines.
“It seems like families are financially secure because there is money coming from abroad,” he said. “But that security comes at the cost of separation and is often temporary.”
Africa also criticized the government’s continued reliance on remittances to cushion the economy instead of addressing deeper structural problems.
“The government keeps using remittances and a weaker peso as if these are economic strengths,” he said. “But they become excuses not to take stronger action against rising prices or invest in domestic industries and agriculture.”
He said the country’s dependence on imported fuel, food and manufactured products leaves Filipino consumers vulnerable whenever the peso weakens.
“Remittances cushion families and the economy temporarily,” Africa said. “But they do not substitute for stronger agriculture, domestic industries and better-paying jobs in the Philippines.”
For families like the Gammads, the stronger dollar may make remittance receipts look bigger on paper. But at the grocery store, the gasoline station and the payment counter, the extra pesos are becoming harder to feel. /cb