Inflation shrinks ‘poor man’s bread’

Straight into the oven: An employee carrying trays of the popular breakfast roll pandesal to be baked at a bakery in Manila. — AFP

AS the war in Ukraine pushes up wheat prices and a weaker peso raises the cost of imported edible oil, many Philippine bakers are shrinking the size of a popular breakfast roll to cope with higher inflation.

The slightly sweet and pillowy soft “pandesal”, which Filipinos often dunk in coffee or stuff with cheese, used to weigh 35g at Matimyas Bakery, a breadmaker in suburban Manila.

But as the cost of local and imported ingredients soared in recent months, co-owner Jam Mauleon gradually reduced the size of the roll – known as the “poor man’s bread” because it is cheap – to around 25g to avoid raising the 2.50 peso (RM0.20) price.

She feared that even a slight increase would send cash-strapped customers in her neighbourhood to a rival bakery five blocks away.

As the Philippines lifted Covid-19 restrictions and schoolchildren began returning to the classroom this year, Mauleon had hoped economic conditions for the bakery would improve.

But since December, as wheat and fuel prices surged, the price of flour has increased by more than 30%, while sugar is up 25% and salt costs 40% more, she said.

After reducing the number of employees and absorbing higher costs, Mauleon was forced this week to raise the price of a pandesal by 20% to three pesos (RM0.24).

Shrinking the size of the roll any further would affect its quality, she said.

“Pandesal is very important in the lives of Filipinos,” she added.

Inflation in the Philippines hit 6.1% in June, the highest level in nearly four years, as steep fuel price hikes pushed up food and transport costs.

Lawmaker and economist Joey Salceda said bread would be hardest hit by “shrinkflation”, where the size of a product gets smaller but the price stays the same. — AFP