Majority of Filipinos say P500 can’t cover Noche Buena costs — survey

By Chloe Mari A. Hufana, Reporter

MORE than nine in 10 Filipinos (91%) say a P500 budget is not enough to prepare Noche Buena, the traditional Christmas Eve dinner, for a typical family of five, a year-end survey found, underscoring how inflation has eroded purchasing power even for staple holiday meals.

Only a small minority of the 1,500 respondents surveyed from Dec. 7-10 consider the amount sufficient, highlighting the impact of cost-of-living pressures facing households as food prices remain elevated, according to the PAHAYAG 2025 End-of-the-Year Survey, released on Tuesday.

Despite the strain, many Filipinos remain guardedly upbeat, with more than half of respondents saying they expect a happy Christmas, while 31% described their outlook as “just okay.”

Only 16% said they anticipate an unhappy holiday season, suggesting families have adjusted expectations and budgets to cope with higher prices.

Sentiment was broadly similar across Luzon, the Visayas and Mindanao, even as the overwhelming majority in all regions agreed that P500 falls short for Noche Buena. Mindanao recorded fewer respondents expecting a “very happy” Christmas, but the highest share said it would be “just okay,” reflecting cautious optimism amid economic constraints.

The debate comes after Trade Secretary Ma. Cristina A. Roque said last month that P500 is enough for a family of four or less to celebrate the traditionally festive Christmas Eve dinner in a predominantly Catholic nation.

“For P500, that already includes Christmas ham, spaghetti, fruit salad, macaroni salad, and 10 pieces of Pinoy pandesal,” she said last November in Filipino. “When someone asked me whether P500 was enough, I said yes — P500 can be enough for a family of four or fewer.”

According to a BusinessWorld research last Dec. 2, the cost of preparing Noche Buena continues to rise, with prices of staple holiday items increasing again this year after a brief dip in 2024.

The price index for the Noche Buena basket rose 1.8% year on year, reversing last year’s 0.2% decline, according to data tracked by BusinessWorld. The rebound pushed the average annual price increase of the basket to 2.3% from 2012 to the present.

Over a longer horizon, the squeeze on household budgets is more pronounced. Since 2011, the Noche Buena price index has climbed by 27.3%, underscoring how steady price increases have accumulated over more than a decade. The data are based on the Department of Trade and Industry’s suggested retail prices, with records going back to 2011, providing a snapshot of how holiday costs have evolved.

WAGES AND INFLATION GAP
The controversy over the P500 Noche Buena highlighted the growing gap between wages and inflation in the Philippines, said University of the Philippines School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco.

Despite wage orders this year, statutory minimum salaries remain below the government’s own poverty threshold across all regions, he added.

The Asia Floor Wage Alliance estimates a living wage of P36,000 per month — double the capital region’s minimum wage of P695 daily or about P18,000 monthly.

“This wage-inflation gap sustains labor’s call for a legislated salary hike despite Congress inaction,” he said via Facebook Messenger.