Authors

Nicole G. Tremotcha*
Biabas Trade High School
Bohol, Philippines

‎Jerson V. Cuyacot
Biabas Trade High School
Bohol, Philippines

‎Ivy Joy L. Vallespin
Biabas Trade High School
Bohol, Philippines

Jill Margaret M. Cuyno
Biabas Trade High School
Bohol, Philippines

Jenifer V. Cuyacot
Biabas Trade High School
Bohol, Philippines

Chesca M. Maglana
Biabas Trade High School
Bohol, Philippines

Krisha Mariel C. Salmingo
Biabas Trade High School
Bohol, Philippines

Cheery L. Olaguir
Biabas Trade High School
Bohol, Philippines

Zaldy H. Bacus
Biabas Trade High School
Bohol, Philippines
Email: zaldybacus30@gmail.com

Abstract

This study aimed to determine the effect of inflation on the daily household expenses of residents in Barangay Biabas, Ubay, Bohol. A descriptive correlational research design was used to examine the relationship between inflation awareness and smart budgeting practices. The respondents were household residents with direct experience in managing daily expenses and were selected through simple random sampling. Data were collected using a researcher-made Likert-scale questionnaire that measured demographic profile, inflation awareness, and smart budgeting practices. The research followed a systematic process that included securing permission from local officials, validating the research instrument, administering the survey, retrieving completed questionnaires, and conducting statistical analysis. The findings revealed that respondents showed a high level of inflation awareness and practiced smart budgeting in managing their daily expenses. Monitoring expenses and controlling spending were among the most common budgeting practices. The results also showed that the person in charge of budgeting and the source of income influenced household financial decisions. Statistical analysis indicated a significant relationship between inflation awareness and smart budgeting practices, showing that increased awareness of rising prices leads to better budgeting behavior. The study concluded that residents are able to adjust their spending despite financial difficulties and that proper budgeting helps households manage the effects of inflation. It is recommended that residents continue practicing budgeting, barangay officials support financial literacy activities, and future researchers conduct related studies to improve household financial management.

Keywords: Inflation awareness, smart budgeting, household expenses, financial management, descriptive-correlational research, Barangay Biabas

*Corresponding author
DOI: http://doi.org/10.69651/PIJHSS0501846

Recommended citation:
Tremotcha, N. G., Cuyacot, J. V., Cuyacot, J. V., Maglana, C. M., Vallespin, I. J. L., Salmingo, K. M. C., Cuyno, J. M. M., Olaguir, C. L., & Bacus, Z. H (2026). The effect of inflation on the smart budgeting of daily household expenses of Barangay Biabas residents. Pantao (The International Journal of the Humanities and Social Sciences) 5 (1), 9546-9557. http://doi.org/10.69651/PIJHSS0501846

Read the full text

References

Afonso, A. (2025). Consumption patterns of indebted households: Unravelling the relevance of fiscal policy. International Journal of Economic Policy Studies, 19, 31–57. https://link.springer.com/article/10.1007/s42495-024-00141-3

Altig, D., Auerbach, A. J., Eidschun, E. F., Kotlikoff, L. J., & Ye, V. Y. (2024). Inflation’s impact on American households (NBER Working Paper No. 32482). https://doi.org/10.3386/w32482

ANZ Research. (2024). PHL prices are still high, household spending to remain subdued, ANZ Research says. BusinessWorld. https://www.bworldonline.com/economy/2024/09/26/624241/phl-prices-still-high-household-spending-to-remain-subdued-anz-research-says

Balisacan, A., & Pangandaman, Z. (2024). Officials explain how inflation impacts national budget. Philstar. https://www.philstar.com/business/2024/08/13/2377609/officials-explain-how-inflation-impacts-national-budget

Batrancea, L. (2021). Empirical evidence regarding the impact of economic growth and inflation on economic sentiment and household consumption. Journal of Risk and Financial Management, 14(7), 336. https://doi.org/10.3390/jrfm14070336

Brandão-Marques, L., Gelos, G., Hofman, D. J., Otten, J., Pasricha, G. K., & Strauss, Z. (2023). Do household expectations help predict inflation? (IMF Working Paper No. 224). https://doi.org/10.5089/9798400258152.001

Briones, R. M. (2022). Food and nutrient intake response to food prices and government programs: Implications for the recent economic shocks (PIDS Discussion Paper No. 2022-44). https://pidswebs.pids.gov.ph/CDN/document/pidsdps2244.pdf

Cacnio, F. C. (2024). Insights on inflation expectations in the Philippines from a household survey. Philippine Review of Economics. https://www.pre.econ.upd.edu.ph/index.php/pre/article/view/1029

Cagan, P. (1956). The monetary dynamics of hyperinflation. https://people.bu.edu/rking/SZGcourse/Cagan.pdf

Chang, L. (2024). Inflation, credit costs, and household consumption. Global Economic Review, 53(3), 305–324. https://doi.org/10.1080/1226508X.2023.1234567

Coibion, O., & Gorodnichenko, Y. (2021). Inflation expectations and consumer spending. American Economic Journal: Economic Policy, 13(4), 244–283. https://doi.org/10.1257/pol.20190636

Coibion, O., Gorodnichenko, Y., & Weber, M. (2020). Forward guidance and household expectations (NBER Working Paper No. 26778). https://doi.org/10.3386/w26778

Ferreira, C., Leiva, J. M., Nuño Barrau, G., Ortiz, A., Rodrigo, T., & Vazquez, S. (2023). The heterogeneous impact of inflation on households’ balance sheets (BIS Working Paper No. 1152). https://www.bis.org/publ/work1152.htm

Friedman, M. (1957). A theory of the consumption function. https://ia801203.us.archive.org/22/items/in.ernet.dli.2015.136983/2015.13698.3.A-Theory-Of-The-Consumption-Function_text.pdf

Government of the Philippines. (1992). Republic Act No. 7581: The Price Act. Official Gazette. https://www.officialgazette.gov.ph/1992/05/27/republic-act-no-7581/

Government of the Philippines. (1996). Republic Act No. 8178: Agricultural tariffication act of 1996. Official Gazette. https://www.officialgazette.gov.ph/1996/03/28/republic-act-no-8178/

Government of the Philippines. (1997). Republic Act No. 8425: Social reform and poverty alleviation act. Official Gazette. https://www.officialgazette.gov.ph/1997/12/11/republic-act-no-8425/

Government of the Philippines. (2008). Republic Act No. 9502: The universally accessible cheaper and quality medicines act. Official Gazette. https://www.officialgazette.gov.ph/2008/06/06/republic-act-no-9502/

Government of the Philippines. (2019). Republic Act No. 11203: The rice tariffication law. Official Gazette. https://www.officialgazette.gov.ph/2019/02/14/republic-act-no-11203/

Jordà, Ò., & Nechio, F. (2022). Rising inflation and household saving behavior: International evidence. Journal of International Economics, 136, 103674. https://doi.org/10.1016/j.jinteco.2021.103674

Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. https://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Behavioral_Decision_Theory/Kahneman_Tversky_1979_Prospect_theory.pdf

Keynes, J. M. (1936). The general theory of employment, interest and money. https://www.files.ethz.ch/isn/125515/1366_keynestheoryofemployment.pdf

Kostyshyna, O., & Petersen, L. (2024). The effect of inflation uncertainty on household expectations and spending (NBER Working Paper No. 32939). https://doi.org/10.3386/w32939

Lastimosa, R. J., Hornada, J. K. S., Sedik, A. L. B., & Gaygay, C. F. (2023). Perceived impact of modern-day inflation on the budget consumption and decisions of senior high school learners. International Journal of Multidisciplinary: Applied Business and Education Research, 4(11), 4009–4020. https://doi.org/10.11594/ijmaber.04.11.21

Maligro, T. (2025, January 24). BSP study: Faster inflation expectations fuel higher spending among PH households. Rappler. https://www.rappler.com/business/inflation-expectations-spending-households-philippines-bangko-sentral-study/

Mapa, C. R., Bunyi, M. K. C., Arcin, A. C. T., & Fuentes, E. B. L. (2024). Dissecting consumer attention: Insights on consumers’ inflation expectations in the Philippines (BSP Discussion Paper No. 2024-15). https://www.bsp.gov.ph/Sites/researchsite/Publications/BSP-Discussion-Papers/DP202415.pdf

Marino, G., & Rossi, M. (2024). Essential price inflation and household welfare in low-income families. European Journal of Public Economics, 58, 101–120. https://doi.org/10.1016/j.ejpubeco.2023.104562

Modigliani, F., & Brumberg, R. (1954). Utility analysis and the consumption function. https://www.nobelprize.org/uploads/2018/06/modigliani-lecture.pdf

Philippine Statistics Authority. (2022). Summary inflation report: CPI for the bottom 30% income households (June 2022). https://psa.gov.ph/price-indices/bottom-30/node/167687

Sala, H. (2024). Household finances, debt overhang and consumption. Journal of Economic Behavior & Organization. https://www.sciencedirect.com/science/article/pii/S0264999324001937

Schnorpfeil, P., Weber, M., & Hackethal, A. (2023). Households’ response to the wealth effects of inflation (NBER Working Paper No. 31672). https://doi.org/10.3386/w31672