Even with the recent lows in consumer price hikes, inflation remains the primary concern of Filipinos, as half of households are seen scaling back on their spending during the holiday season.

According to a consumer pulse survey by TransUnion, a global information and insights company, 50 percent of Filipinos “expect to spend less on holiday shopping compared to last year, showing more deliberate spending even during traditionally high-consumption periods.”

This is the expected behavior of consumers, as nearly half of the country’s households have already scaled back discretionary activities such as dining out and travel in the fourth quarter of 2025.

One in four households cut back on digital services, while another quarter dropped subscriptions or memberships altogether.

TransUnion said this comes against the backdrop of inflation for basic goods topping (81 percent) the consumers’ concerns during the quarter.

Job stability and borrowing costs also emerged as major concerns for consumers, which TransUnion noted are the same priorities consumers have held since last year.

“This consistency suggests that consumers are budgeting with long-term challenges in mind, not short-term shocks,” TransUnion said.

Data from the Philippine Statistics Authority (PSA) showed that the jobless rate climbed to a three-month high of five percent in October, representing about 2.54 million jobless Filipinos, up from 3.8 percent in the previous month and 3.9 percent a year earlier.

Consequently, the employment rate dropped both month-on-month and year-on-year. October’s jobless rate was the highest since July’s 5.3 percent, when the number of unemployed reached a higher 2.59 million.

About 42 percent of consumers reported higher incomes in the past three months, while 41 percent saw no change—showing that momentum has softened but households are not losing ground.

About 75 percent of Filipinos expect their income to rise in the next year, and 80 percent are optimistic about their household finances.

TransUnion said these trends point to resilience and a sense of control, as consumers adjust to tighter budgets while staying confident in their financial outlook.

Meanwhile, key borrowing costs were brought down to 4.5 percent on Thursday, Dec. 11, as the Bangko Sentral ng Pilipinas’ (BSP) growth outlook turned even gloomier amid the deepening probe into the alleged flood control fund corruption.

Lower lending costs encourage consumers to borrow money from banks, an activity that is expected to drive economic activity, which has been on a downtrend since the public infrastructure cases began to unfold.

Looking ahead, consumers expect their expenses to keep rising: nearly half anticipate higher bills and loan payments next quarter, while many also see medical costs and retail spending going up.

Over a quarter plan to spend more on big-ticket items such as appliances or vehicles. The credit reference agency said Filipinos are generally not retreating from economic activity, as they are simply reshaping what “smart spending” means in a high-cost environment.

TransUnion Asia Pacific research and consulting principal Weihan Sun said consumers are managing spending “more pragmatically, especially with Filipinos looking to spend less this holiday season compared to last year. It’s a sign of practical optimism.”

“People are still participating in the economy but are doing so on their own terms and with greater financial intent,” said Sun.