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Juan and The Inflation Rate

The document discusses the rising inflation rate in the Philippines and its impact. It notes that the inflation rate increased to 6.7% in September 2018, the highest in nine years. This is having negative effects such as increasing the prices of food, transportation, and other goods. The rising inflation rate is depreciating the Philippine peso. All of this is causing turmoil for Filipino workers and citizens who are demanding lower prices and higher wages. While the government believes this issue will benefit the economy long-term, there is concern about the short-term impacts on consumers if prices continue to increase rapidly.

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Master Reid
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139 views

Juan and The Inflation Rate

The document discusses the rising inflation rate in the Philippines and its impact. It notes that the inflation rate increased to 6.7% in September 2018, the highest in nine years. This is having negative effects such as increasing the prices of food, transportation, and other goods. The rising inflation rate is depreciating the Philippine peso. All of this is causing turmoil for Filipino workers and citizens who are demanding lower prices and higher wages. While the government believes this issue will benefit the economy long-term, there is concern about the short-term impacts on consumers if prices continue to increase rapidly.

Uploaded by

Master Reid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Juan dela Cruz and the Inflation Rate: A Closer Look

By: Dr. Reid Allen S. Ugsang

Once upon a time, in an archipelago composed of seven thousand one hundred seven islands, a
great drawback has left its citizenries awestruck, fuming, and grasping for an explanation over the sub-
problems it has sprouted.
If you go to a public market right now, you’ll probably see what this problem is. Rice prices have
increased, well, every price has increased, to put it in bluntly.
This event was all chartered by the constant increase of the Inflation Rate. According to the
most recent report the Philippine Statistics Authority has released this September 2018, the rate has
risen to a staggering 6.7 %, far from its 2017 equivalent which was only up to 3.0%. It has been
reportedly the highest in nine years, surpassing the government’s estimate of only going up to 6.2%.
Out of all the countries of the ASEAN, the Philippines’ inflation rate is the highest, with only the
neighboring nations such as Indonesia having 2.88%, Laos with 1.97%, and Malaysia with 0.20%.
What is the relevance of this ‘Inflation Rate’? Why is it so high in the Philippines? The inflation
rate is the measure of the overall pricing of commodities and services. So to say, it is the gauge of the
things you’ll buy or avail.
Nothing is free these days, even a piece of candy is worth something. Food, transportation, fuel,
anything you can think of that needs money to be purchased is heftily increasing in its value, mostly
because of the contributing factors of both international and domestic supplies that need to be bought
like oil and gasoline. Our country does not produce oil, so it is imperative for us to buy from other
countries, and therefore if their prices are high for that product, we’ll have to compensate for it and also
increase the taxes we have in order to pay what we’re due.
Life gets harder since at the same time the TRAIN law had been passed, escalating gasoline
prices. The daily evening news always displays the pricing of petroleum produce, and it can be seen that
a rollback rarely happens and what’s constant is the price hiking. It is also predicted that the cost of the
global oil prices will continue to rise to $90 per barrel, in the cause of inadequate resources from the
exporters.
As a result of an increase of the inflation rate, the value of the Philippine peso depreciates. The
currency exchange has closed at Php 54.18 against USD 1, a feat that hadn’t occurred in 12 years.
Opposing our position as the highest in the rate of inflation among the ASEAN countries, our Philippine
Peso is one of the lowest and weakest in the association.
All of this has landed the people in turmoil, with workers rallying for higher wages and people
demanding lower prices. The government has yet to address this problem in pricing, since they are
believing that all of this will benefit in the long run.
But what if it takes too long and things do an unexpected turn?
Another element of the economical stand that is being overlooked is the reaction of the consumers.
People are the ones who control the whole course of the economy, with them being the ones who need
the goods that are to be paid for. If their essentials like rice, vegetables, or in general, food, increase
their worth, they will complain and opt to plea for lower prices since they need that to survive. If news
goes out that prices will hike the next day, people will rush in to buy whatever, lessening stocks and
promoting higher prices.
In the end, our economy is an evolving one, whether for the best or not is still up for debate.
Maybe our temporary suffering will result to a more promising future, or maybe it will remain as it is.
But it is for sure that with the unifying efforts of the government and the people, this bump along the
road of development will be passed and a destination of economical prosperity will come, with the
citizens of a South East Asian archipelago finally breathing in relief and living with comfort in the state of
their lives.
(Sa graphics po pwede ung inflation rate thru the years, meron po sa tradingeconomy.com, and ung
comparison against the countries’ rates)

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