Overseas Filipino workers (OFWs) sent a record high amount of money to their families in February as inflation in the Philippines continued to rise. According to the Bangko Sentral ng Pilipinas, cash remittances reached $2.65 billion, marking a 3 percent increase compared to the previous year.
The growth in remittances was driven by land-based workers, whose transfers contributed significantly to the overall spike. Economist Ella Oplas from De La Salle University noted that OFWs were increasing their remittances to help their families cope with the high inflation at home.
Inflation in February rose to 3.4 percent, ending a four-month downtrend, largely due to higher prices of key food items like rice. Oplas explained that as prices continued to climb, OFWs needed to send more money to ensure their families could afford basic necessities.
During the first two months of the year, remittances totaled $5.48 billion, a 2.8 percent increase from the same period last year. Analysts predict that remittance growth will remain steady, with the United States accounting for the highest share of overall remittances.
Despite the positive outlook for remittances, Oplas expressed concern that the increase was driven more by the need to combat inflation rather than income growth among OFWs. She emphasized the ongoing importance of remittances in supporting families back home in the face of rising prices.
