INFLATION(Inflation rate in the Philippines)

1BSA1
Prof. Ernesto

Prepared by:

BANGSAL, Charles Jewett

DEL ROSARIO, Devine Grace
CASTRO, Jasmin
REYES, Niezel Joy
ROBLES, Angelica
SAULO, Marc

Brief introduction, what is INFLATION?

 Inflation is the rate in which the general level of prices of goods and services increase.
 Its computation is based on the Consumer Price Index (CPI), which measures the average price of the standard basket of goods and services
consumed by a household: food products, electricity, gas, and clothing.
 As inflation rises, the value of the peso becomes lower, as people are able to buy less products and services for the same amount.
(JESSICA BARTOLOME, GMA News)
September 5, 2018 10:03pm
DESCRIPTIVE ANALYSIS
The graph made using the data from https://psa.gov.ph shows how inflation rate increase and decrease based on the price of goods (food
products, oil, clothes…) due to trends, events (such as calamities, storms, drought …), and changes in economy. For example, the Philippines inflation
rate skyrocketed from 2007’s 2.8 to 9.3 in 2008, because of various reasons, some of it are; Food prices followed a continuous uptrend since mid-2007
due to a surge in the prices of some agricultural commodities in international markets, caused by a combination of factors affecting both supply and
demand. Recent ‘typhoons’ affected agricultural crops, particularly fruits and vegetables, and the supply of fish. In addition, more ‘expensive input
costs’ continued to support higher rice and meat prices. Domestic retail prices of rice increased sharply during this quarter, with ‘higher farm gate
prices due to more expensive fertilizer and irrigation inputs.’ Meanwhile, the price spikes in fruits and vegetables were traced mainly to ‘supply
disruptions’ as a result of a series of ‘typhoons’ which swept the country during the quarter. The price of meat products also increased due mainly to
the ‘rising cost of feeds’ and the ‘tight domestic supply’ of beef and pork. Energy Prices International oil prices rose sharply in Q2 2008 with the
continued tightness in supply, due to higher demand. Global oil market remained fundamentally tight in the second quarter due to ‘rising world oil
consumption’ despite a slowdown in U.S. The prices of gasoline products and diesel oil increased twelve times while the price of LPG increased six times
during the review quarter. From two percent in March, the import tariff on specific crude and refined petroleum products was reduced to one percent in
April and May 2008 and further to zero in June 2008.

Therefore the changes in inflation rate of the Philippines or any other countries isn’t just simply an effect of internal changes, or is limited on
the inside issues but is also affected by the happenings outside the country, especially the country’s suppliers, as well as global issues/catastrophe.

REFERENCE:

https://psa.gov.ph

http://www.bsp.gov.ph/downloads/Publications/2008/IR2qtr_2008.pdf