BUSINESS NEWS | Sari-Sari stores face rising prices despite lower inflation
Drawing from more than 1 million monthly sales transactions from over 300,000 sari-sari stores nationwide, Packworks’ business intelligence platform, Sari IQ, tracked retail prices from 2023 to 2025.
Source: PackWorks
Despite a steady decline in the country’s inflation rate, sari-sari stores across the Philippines are seeing continued price increases on everyday goods, according to a new study by Filipino tech startup Packworks.
Drawing from more than 1 million monthly sales transactions from over 300,000 sari-sari stores nationwide, Packworks’ business intelligence platform, Sari IQ, tracked retail prices from 2023 to 2025. The findings revealed that prices for basic goods have continued to rise—even as the national inflation rate dropped from 6.0% in 2023 to 1.9% between January and May 2025, with a low of 1.3% in the latest data.
The most significant price hikes were seen in baby care, snacks, and confectionery items. For instance, a 50-milliliter bottle of Johnson’s baby oil increased by 17%, from P42 in 2023 to P49 in 2025. Tender Care baby powder also saw a 25% jump, rising from P40 to P50. These changes were reported in at least five regions, including Ilocos, Cagayan Valley, Central Luzon, MIMAROPA, and Bicol.
Snacks also saw steep increases. The price of a 50-gram pack of Lala Fish Crackers rose 27%, from P18 to P23, while a 150-gram pack of Fres candy increased 16%, from P36 to P42. These price spikes were recorded across multiple regions, with Fres candy rising in at least nine.
“Sari-sari stores operate with very thin profit margins,” said Packworks Chief Data Officer Andoy Montiel. “A slight increase in wholesale costs can directly impact consumer pricing, creating a ripple effect in low-income communities that rely on these stores for daily needs.”
The study also reviewed price trends in rice, the country’s staple commodity. A five-kilogram pack of premium rice jumped from P235 in 2023 to P295 in 2024 before falling slightly to P285 in early 2025. Although the Department of Agriculture’s price cap helped ease prices, they still remain higher than the national average of P50.54 per kilo for well-milled rice.
Packworks noted that price fluctuations also affect repacked rice sold in sari-sari stores, where customers often buy in small amounts or “tingi” to stretch household budgets.
“Sari-sari stores are a lifeline for millions of Filipinos,” said Packworks CEO Bing Tan. “Our data shows a disconnect between national inflation trends and what’s happening on the ground. These insights can guide both policymakers and suppliers in providing targeted support.”
Around 94% of Filipinos rely on sari-sari stores for their daily essentials, making them a critical part of the country’s economic fabric—even as they grapple with rising costs amid a cooling inflation rate.
