INFLATION’S GRIP: A QUALITATIVE ANALYSIS OF THE SPENDING PATTERNS AND LIVING STANDARDS OF MINIMUM WAGE EARNERS

Abstract

The Philippine economy has experienced high inflation rates within the past five years. This study aims to analyze the influence of inflation on Minimum Wage Earners' (MWE) spending patterns and living standards. A qualitative phenomenological research design was utilized to explore and gather participants' experiences, perceptions, and behavior. The study's participants are residents and MWE workers from the City of San Fernando, Pampanga, Philippines. Thematic analysis was used to interpret and present the underlying themes and patterns inherent in the participants' narratives. Findings showed that 80% of the participants are financially deprived, 67% resort to being financially resourceful, and 60% have scrimp living conditions amidst inflation. The increase in inflation decreases the purchasing power of the MWE, thus affecting their overall living standards. Consequently, the MWE created different strategies and coping mechanisms in response to inflation. Researchers developed a Framework of Inflation's Grip on Spending Patterns and Living Standards to show that as prices continuously increase, it influences every individual's living standards and spending patterns. As a recommendation, MWE should consider embracing resourceful financial practices. The recommended adjustments are proper budgeting, saving, thrifty spending habits, prioritizing needs, and making informed financial decisions to help enhance their financial stability.