Sari-sari stores hit by steep price hikes even as inflation cools, Packworks says

While the Philippines celebrates its lowest inflation rates in nearly six years, new data tells a different story at street level: prices at sari-sari stores are still climbing - and fast.

According to fresh insights from tech startup Packworks, which analysed over one million monthly sales transactions from 300,000 sari-sari stores across the country, prices for everyday goods have surged significantly between 2023 and 2025 - even as official inflation dropped from 6.0% to just 1.3% this May.

Essential FMCG items saw double-digit spikes. Johnson’s baby oil (50ml) jumped 17% to 49 pesos (US$0.87), while Tender Care baby powder (100g) rose 25% to 50 pesos (US$0.89). Price hikes were seen across at least five major regions, including Central Luzon and MIMAROPA.

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Snack items weren’t spared. The price of Lala Fish Crackers Classic (50g), a popular low-cost snack, rose 27%, while a 150g pack of Fres candy now costs 42 pesos (US$0.75) - a 16% increase seen across nine regions nationwide.

“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 neighbours,” said Andoy Montiel, chief data officer at Packworks. “Even a slight increase in wholesale prices reveals how vulnerable micro-retailers are to cost shifts upstream. This creates a ripple effect, especially in low-income communities where these stores are the primary source of daily essentials.”

Even rice, the country’s most vital staple, showed sharp movement. A five-kilogram pack of premium rice jumped from 235 pesos (US$4.18) in 2023 to 295 pesos (US$5.24) in 2024. Though it dropped slightly to 285 pesos (US$5.07) this year following a government price cap on imports, it remains higher than the national average for well-milled rice.

Packworks also highlighted pricing changes in tingi-tingi bigas - informally repacked rice bundles commonly sold in sari-sari stores. These offer insight into consumer coping behaviour in the face of tight daily budgets.

“Sari-sari stores are more than just retail outlets, but a lifeline for millions of Filipinos,” said Bing Tan, CEO and co-founder of Packworks. “Our latest analysis 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.”

With around 94% of Filipinos depending on sari-sari stores for their everyday needs - and the majority of these outlets owned by women - the stakes are high. Price fluctuations not only affect household budgets, but ripple through the entire FMCG ecosystem, from suppliers to wholesalers and end consumers.

Packworks, launched in 2018, has evolved into a platform for micro-retail analytics. Its Sari IQ dashboard continues to offer real-time visibility into price behaviour at the last mile, helping brands, policymakers, and investors keep a pulse on the most distributed retail network in the country.

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