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HOLY ANGEL UNIVERSITY

HOLY ANGEL UNIVERSITY

School of Business and Accountancy
#Holy Angel Avenue, Sto. Rosario,
Angeles City
A.Y. 2021-2022

The Impact of COVID-19 on the Inflation of Prices in Angeles City

Submitted By:

Buan, Jan Paolo

Domingo Jr, Harry

Manaloto, Kian Clarence

Mitra, Maria Sarah Luciae

Pantig, Angelo Mohan

Section: B-111

Mathematics in the Modern World

Professor Biag Sotero Jr.

Date

March 22, 2022

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INTRODCUTION

Statement of the Research Problem:

This research study aims to determine and describe the effect of COVID-19 on the inflation of
prices in Angeles City.

Background of the Study:

Inflation

According to Schmidt (2021), inflation is the state of financial prices increasing over a

certain period of time. It often encompasses a broad measurement, such as the overall increase in

prices or the increase in a country’s cost of living. Examples include an increase in basic

commodities, such as food. Inflation can also occur in the prices of certain services, like

automotive or energy businesses. The context may vary in where inflation can occur, but the main

essence of inflation is how expensive a certain set of goods or services can become over a given

period.

Angeles City

Before being officially known as Angeles City (AC), it was only a small settlement led

by Don Angel Pantallion de Miranda. This metropolitan area used to be a part of San Fernando.

However, on December 8, 1829, Don Angel paid the needed amount for this settlement to be

officially separated from San Fernando, Pampanga. It was then renamed in commemoration of
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its patron saint, the Holy Guardian Angels, and to pay tribute to the name of its founder, Don

Angel (Philippine Cities, 2021).

COVID-19

According to Olaimat et al. (2020), this coronavirus disease, COVID-19, is an emerging

respiratory infection. It is also stated to be a member of the coronavirus family that has been

proven to be a zoonotic pathogen. This COVID-19 disease was first recorded and confirmed in

Wuhan, China in December 2019. After the first confirmed case of this virus, it spread across the

modern world in only 2 months, making it an official call for a global pandemic.

Significance of the Study

This study will benefit the following:

The Filipinos - With this research, the Filipinos will benefit because they can have more

knowledge and enable them to become more aware about the current situation of their country in

terms of COVID-19 or health-related concerns. As well as in the inflation or economic issues

concerning the country.

The Economists - This research will benefit the economists in a way that will serve as an

additional medium or tool for them to learn and study more about the problems of our economy.

This may also be used by them to possibly create a plan or solution in order to resolve these

ongoing problems.
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The Medical Professionals - This study will also be beneficial to the medical professionals in a

way that this will give them an idea of how the pandemic and the inflation relates to one another.

Allowing more knowledge for the medical and economic field to work simultaneously with one

another.

The Teachers and Schools - This research may also be beneficial for the teachers and even

schools, this topic is an eye-opener that should be taught to the younger generation, so that they

will be more aware of the importance of learning economics and what is inflation.

The Future Researchers - This research will be a useful reference for the researchers who would

plan to make a related study precisely pertaining to the relationship between inflation and the

Covid-19 pandemic.

Research Questions or Research Problems

1. The inflation status in Angeles City amidst the COVID-19 Pandemic.

2. The average expense of groceries incurred during the lockdown periods due to COVID-

19 in Angeles City.

3. The percentage of healthcare-related products in Angeles City whose prices have

increased during this pandemic.

Hypothesis

In the research about the Impact of COVID-19 on the Inflation of Prices in Angeles City, the

hypothesis below is raised:

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Ho: The prices of goods to be sold inside the city of Angeles will increase as the stocks of the

sellers might be on hold or limited amidst of the recurring lockdowns since March of 2020.

Conceptual Framework

The terms "conceptual framework" and "theoretical framework" are frequently and

incorrectly confused (Grant & Osanloo, 2014). A conceptual framework is not a random

collection of different concepts intended to frame an issue, just as a theory does not or cannot be

expected to explain all phenomenal situations in traditional research. Instead, it is a method of

recognizing and building an epistemological mentality and a functional worldview approach to

the stated problem for both the researcher and the reader. The conceptual framework above

consisted of three divisions: input, process, and output. The IPO framework is intended to identify

the respondents in Angeles City and create an online survey questionnaire as a tool for gathering

data. The process will be attributed by analyzing their forms of response and the results from the
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data gathered. After the processing of data, it is then necessary to determine the output of the said

data.

Review of Related Literature

As stated by Bohl et al. (2018), the common feature of inflation that occurs in every

country is that it shows an increase in the money supply, which then shows the consequences of

the need to finance large fund shortages. This phenomenon most often occurs during or in the

aftershock of war and global epidemics. Also, if completely expected, this inflation allows for

the production of modest social costs. Thus, low and stable inflation is easily forecasted; thus, it

can lead to a decreasing probability of constant forecast errors.

Rivas (2022) mentioned that in the country, Philippines, prices of basic commodities

have risen at a faster pace than expected by the Philippine government. Since the population of

Filipinos struggles to maintain financial stability amid the COVID-19 pandemic, inflation in the

Philippines is mainly in the sector of the food and agricultural industry. As reported by the

Philippine Statistics Authority, inflation in the Philippines during the year 2021 was driven

mainly by the consequences of higher food prices. For the inflation rate to decrease and regain

some control, Socioeconomic Planning Secretary Chua has mentioned that every local supply of

meat must be supplemented by pork imports.

According to Harapan et al. (2020), SARS-CoV-2 has been identified as a novel human-

infecting betacoronavirus. By conducting a phylogenetic analysis, this virus was analyzed to be

in relation to two-bat derived SARS-like coronaviruses that had already been collected in 2018

in the location of eastern China. Since it is a virus, it has rapidly advanced to become a known
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pathogen because of how it infects the bodily cells of humans and how it is able to cause vital

diseases. It has been observed to have rapid transmission, so there must be an equivalent rapid

response to enhance the known science of this pandemic.

According to Fallesen (2021), COVID-19 has had a significant impact on rural livelihoods.

In underprivileged communities in the Philippines, the loss of income and job possibilities were

the most pressing issues. COVID-19 limits and their significant economic impact were especially

difficult to cope with in disaster-prone populations. COVID-19's economic impact is particularly

concerning because the surveyed communities are already a subset of the Philippines' poorest and

most disadvantaged. Communities are in danger of further poverty increases because of severe

employment and income losses. According to the findings, the most pressing issues prior to and

during COVID-19 were lack of economic prospects and pay cuts were already problems, but the

pandemic had exacerbated them greatly. Communities reported limited food supplies, as well as

health, sanitation, and nutrition difficulties, during the pandemic.

According to Mendoza (2021), The pandemic showed us that a growth strategy based on

services and remittances doesn't fare well in the face of a global pandemic outbreak. In 2020, the

Philippines' economic growth slowed to a halt, entering negative territory for the first time since

1999, and the country endured one of the most serious contractions in the ASEAN region. the

Philippines had vaccination rollout delays, which were hindered at first by implementation and

supply concerns, and later by lingering vaccine hesitancy. All of these factors are likely to prolong

the Philippines' recovery.

Review of Related Studies

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According to a study by Labonte and Weinstock (2021), the pandemic has interrupted the

ability of businesses to produce goods and services. These supply and demand interruptions have

caused an increase and a decrease in the prices of affected goods and commodities. This pattern

has disrupted the measures of inflation since March 2021. Due to the pandemic, the shortages

and shutdowns of business operations have caused prices to increase because of the additional

costs that businesses must endure. The economy has not been able to fully recover from the

aftershocks of the pandemic. However, the GDP is rapidly improving. Inflation reflects factors

that are related to the COVID-19 pandemic. If the projections have no error, the increase in

inflation due to the pandemic will be moderate and self-correcting.

According to Cavallo (2020), stated in his study, there are challenges in measuring and

identifying inflation rates during the pandemic. It is due to differences and imbalances in the

commodities and services that are being purchased. During this pandemic, there is inflation in

certain areas of consumption since consumers spend more money on food and other related

categories than on transportation and similar categories. Since the pandemic has caused prices to

inflate, those with low incomes are dealing with more cases of inflation during this crisis.

The economy of the Philippines has experienced a profound downturn in 2020 due to the

impact of the pandemic. The country’s GDP has declined by 9.6% year-on-year. Household final

consumption expenditure fell by 7.9%. While some sectors of the country’s economy have

recorded an increase in inflation as well as a decline in output. With the transportation and storage

sectors recording a 30.9% decline in output in the year 2020. However, the economic activity of
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the country has increased in the latter part of 2020. The Philippine economy is anticipated to

generate progressive growth rebound rates in 2021 and 2022 (Biswas, 2021).

This study by Yu et al. (2020) stated that the COVID-19 pandemic has left the

governments to implement lockdowns and authorize businesses to cease operations for extended

periods of time. In the Philippines, there are disruptions in the economy that lead to inflation

resulting from the lockdowns and the extension of the authorized business shutdowns. Economic

losses and disruptions such as inflation and the reduction of GDP have increased because

lockdowns due to the COVID-19 pandemic have extended longer than what was originally

anticipated by the government.

The COVID-19 pandemic has been a huge contributing factor to recent inflation

problems. One of the ways the pandemic has been affecting prices is that it has caused a decrease

in both demand and supply. The reduction in cumulative inflation that has been recorded indicates

that demand is disinflationary and has overshadowed the decline in supply. Nevertheless, the

components of the pandemic imply that inflation will resume to illustrate vulnerability as long as

the pandemic continues to constrain economic activity (Apergis, 2020).

According to a study by Brighter Life Team (2021), aside from the pandemic, Filipinos

have been fighting the country's growing price rate. According to the Philippine Statistics

Authority, the inflation rate increased by more than 100 percent from 2.1 percent in May 2020 to

4.5 percent in May 2021. Inflation means paying more for the same goods and services that you

could previously buy at a cheaper price. Most of the time, an increase in income does not keep
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pace with inflation, making it more difficult to make ends meet. Despite the fact that, according

to the Total Remuneration Survey (TRS) 2020, business owners intend to raise pay by an average

of 5.6 percent in 2021, more than half of the companies have indicated that they will not do so.

Here are some examples of the effects of the rising inflation in the Philippines; Reduced

purchasing power, Lifestyle change, Insufficient fixed income, Compromised health, Lower

capacity to save. While here is an example of ways in order to manage the effects of the rising

inflation in the Philippines; Always stay one step ahead, Explore sources of income, Reduce your

expenses, Start investing, Take advantage of life insurance.

METHODOLOGY

Research Design

We, as the researchers, will be using quantitative research to determine the statistical data

and differences between the inflation throughout the COVID-19 pandemic. According to Pritha

Bhandari (2020), quantitative research is about the process of collecting and analyzing arithmetic

data. It can be used to find similar patterns, make predictions, and generalize results to wider

populations. Furthermore, under this research, the correlation research design will be applied to

the study to identify predominance and connections among factors and to forecast events from

current data and knowledge. According to McLeaod (2020), correlational methods offer a more

detailed measurement of the extent to which two variables are related.

Respondents of the Study and Sampling Technique

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The researchers used a simple random sampling technique for the sampling design in this

study. In accordance with Thomas (2020), simple random sampling is a variety of probability

sampling in which a subset of the participants from a population is randomly chosen by the

researcher. Anyone in the population has the opportunity to be selected equally with the data

gathered from a large proportion. This technique is the most direct of all the probability sampling

methods due to the exact reason that it only includes a single random selection and requires minor

information about the said population. The respondents of the study are individuals within the

vicinity of Angeles City, Pampanga.

Data Collection Method and the Research Instrument

Researchers will use document review for data collection. This method of gathering data

entails the review of present and available information coming from the acknowledged and cited

resources in order to come up with presentable data that will be supplementary in understanding

the research. Analyzing data from available references that have passed the given conditions will

provide the researchers with subsequent information about the relationship between inflation and

the COVID-19 Pandemic. Furthermore, the researchers will be using self-administered computer

survey as a research instrument for collecting information from a pre-defined group of

respondents to pick up data and insights on different themes of interest. According to Lavrakas

(2018), "Computerized self-administered questionnaires are a method of collecting survey data

that takes advantage of computer technology to create an instrument that allows respondents to

complete the survey with little or no other human assistance."

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Data Gathering Procedures

The following steps were considered in the data gathering procedure:

1. Formulating of the research instrument

2. Validation of the research instrument by the research professor

3. Application of the revised version if needed

4. Making of the conclusion and recommendations

5. Gathered the data

6. Compilation of data

Data Analysis

The researchers have chosen to undertake inferential statistics for this study, and, under

this, the simple random sampling method, to answer the approved research questions.

According to Pritha Bhandari (2021), "Inferential Statistics allow researchers to make

inferences based on a data set", meaning inferential statics are instruments that analysts utilize

to draw conclusions approximately the characteristics of a populace, drawn from the

characteristics of a sample, and to choose how certain they can be of the unwavering quality of

those conclusions. Furthermore, according to McLeaod (2020), correlational methods offer a

more detailed measurement of the extent to which two variables are related. The correlational

quantitative analysis method is used when a researcher needs to evaluate the straight

relationship between two variables and neither of the factors speaks to a response or "outcome"

variable. We, the researchers, decided to use correlational analysis to measure the strength and
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relationship between two variables and to quantify how closely one variable is related to

another variable.

Ethical Consideration

Participants who choose to participate in the study will receive the necessary

information from the researchers. Participants have the option to opt out of the study if they

so desire. The researchers will ensure the confidentiality of the study, as well as the identity

of the respondents and their responses to the survey. Participants have the right to know

about the study's findings and to speak with the researchers if they have any questions.

APPENDICES

The Research Instrument

Dearest Respondents,

A Blessed Day to you!

In partial requirement for our midterm examination, we, the researchers of this study, are

currently studying business management at Holy Angel University. We are freshman students

and are currently conducting a quantitative research study namely, “Relationship between

Inflation of prices in Angeles City and the COVID-19 Pandemic”. This is to identify the

relationship of inflation in Angeles City and the COVID-19 pandemic.

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We are currently seeking data and are in the process of collecting information relevant to our

research study. Conforming to our process of collecting data, we would humbly ask for your

dearest participation to indulge yourself in our study and be one of our respondents for this

Survey Questionnaire. With your participation, we may be able to accomplish this research

in due time.

This participation will be fully voluntary. As we would see it, no problem, you wish to

decline. Every piece of collected information from this survey questionnaire will be strictly

confidential and for academic purposes only.

Your participation for this research study will be very much appreciated.

Our sincerest gratitude and appreciation.

Sincerely yours,

Jan Paolo Buan

Harry Domingo Jr.

Kian Clarence Manaloto

Maria Sarah Luciae Mitra

Angelo Mohan Pantig

Research Problem 1: The inflation status in Angeles City amidst the COVID-19 Pandemic
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Question 1: Have you noticed the prices raising for pork, chicken, and fish from local markets

in Angeles City?

Question 2: Do you agree that you have spent more on basic commodities (gas, food, water,

electricity, etc.) this pandemic than pre-pandemic era?

Research Problem 2: The average expense of groceries incurred during the lockdown

periods due to COVID-19 in Angeles City

Question 3: Have the prices of food products in grocery outlets increased during the pandemic?

Question 4: What is/are the grocery item(s) you have purchased frequently that have led to

most of your incurred grocery expense?

Research Problem 3: The percentage of healthcare-related products in Angeles City

whose prices have increased during this pandemic.

Question 5: Did you notice the increase of prices in healthcare related products (alcohol, face

masks, alcohol wipes, medicines, etc.) in local drug stores?

Question 6: Do you think that the pandemic has led to an inflation of the prices of healthcare

related products in Angeles City?

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Personal Information

Name: Jan Paolo D. Buan

Address: Blk 15, Lot 18, Phase 3 Dizon Estate, CSFP

Contact Number: 09162567013

Email Address: janpaolo698@gmail.com

Educational Background:

College

Holy Angel University (2021 -)

High School

Don Bosco Academy, Mabalacat (2016-2020)

Elementary

St Scholastica’s Academy (2007-2015)

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Personal Information

Name: Harry C. Domingo Jr

Address: 283 4th BLK EM’s Barrio, San Nicolas CSFP

Contact number: 09950331056

Email Address: harrycdomingojr@gmail.com

Educational Background

College

Holy Angel University (2021 -)

High school

University of the Assumption (2015 - 2021)

Elementary

University of the Assumption (2006 - 2015)

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Personal Information

Name: Kian Clarence D. Manaloto

Address: 501 Uranus Street, Brgy. Sto. Nino, San Fernando Subd, CSFP

Contact Number: 09293328200

Email Adress: Kmanaloto0209@yahoo.com

Educational Background:

College

Holy Angel University (2021 -)

High school:

University of the Assumption (2015 - 2021)

Elementary:

Mary The Queen Academy of Pampanga (2006 - 2015)

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Personal Information

Name: Maria Sarah Luciae U. Mitra

Address: Blk 20, Lot 14 Zenia Street, Malino Ville CSFP

Contact Number: 09466143740

Email Address: mitraszx@gmail.com

Educational Background

College

Holy Angel University (2021-)

High school

Chevalier School (2015-2021)

Elementary

Wellwood International School (2007-2010)

Chevalier School Inc. (2011-2015)

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Personal Information

Name: Angelo Mohan P. Pantig

Address: 5021 Tagumpay St. Bagumbayan, AC.

Contact Number: 09706725681

Email: angelopantig.mlbb@gmail.com

Educational Background

College

Holy Angel University (2021-)

High School

Holy Angel University (2013-2019)

Elementary

Holy Angel University (2006-2013)

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Name Contribution

Buan, Jan Paolo Methodology: Research design, Data Collection and

Research Instrument, Data Analysis,

Domingo Jr, Harry Methodology: Respondents of the Study, Sampling

Technique, Data Gathering Procedures, Ethical
Considerations

Manaloto, Kian Clarence Introduction: Review of Related Literature, Review of

Related Studies, Significance of the Study

Mitra, Maria Sarah Luciae Introduction and Appendices: Statement of the Problem,
Background of the Study, Review of Related Literature,
Review of Related Studies, Research Questions, Research
Instrument, Data of the Researchers

Pantig, Angelo Mohan Introduction and Appendices: Research Questions,

Hypothesis, Conceptual Framework, Research Instrument

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Schmidt, J. (2021, May 3). How Inflation Erodes The Value Of Your Money. Forbes Advisor.
https://www.forbes.com/advisor/investing/what-is-inflation/

Bohl, M., & Siklos, P. (2018, January). The Anatomy of Inflation: An Economic History
Perspective. Centre for Applied Macroeconomic Analysis.
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01/8_2018_bohl_siklos_0.pdf

Harapan, H., Itoh, N., Yufika, A., Winardi, W., Keam, S., Te, H., Megawati, D., Hayati, Z.,

Wagner, A. L., & Mudatsir, M. (2020). Coronavirus disease 2019 (COVID-19): A

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literature review. Journal of Infection and Public Health, 13(5), 667–673.

https://doi.org/10.1016/j.jiph.2020.03.019

Olaimat, A. N., Aolymat, I., Shahbaz, H. M., & Holley, R. A. (2020). Knowledge and

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Cross-Sectional Study. Frontiers in Public Health, 8.

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Labonte, M., & Weinstock, L. (2021, September 1). Inlfation in the wake of COIV-19.

Congressional Reearch Service. https://sgp.fas.org/crs/misc/R46890.pdf

Cavallo, A. (2020, July). Inflation with Covid Consumption Baskets. NBER Working Paper

Series. https://www.nber.org/system/files/working_papers/w27352/w27352.pdf

Rivas, R. (2022, January 5). No surprise: Philippines misses inflation target for 2021.
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rising-covid19-wave-apr21.html

Yu, K., Aviso, K., Santos, J., & Tan, R. (2020). The EcThe Economic Impact of Lockdowns:
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Philippines Cities. (2021, September 30). Angeles City, Pampanga History - Tourist Spots -
Festivals. https://philippinescities.com/angeles-city-pampanga/

Apergis, E. (2020). Inflation expectations, volatility and Covid-19: evidence from the US
inflation swap rates. Applied Economics Letters, 28(15), 1327–1331.
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Brighter Life Team. (2021, July 12). How to survive amidst the rising inflation rate in the
Philippines. @Sunlifeph; Sun Life Financial Philippines. https://www.sunlife.com.ph/en/life-
goals/live-life-brighter/how-to-survive-amidst-the-rising-inflation-rate-in-the-philippines/
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Mendoza, R. U. (2021, August 2). The Philippine economy under the pandemic: From Asian
tiger to sick man again? Brookings; Brookings. https://www.brookings.edu/blog/order-from-
chaos/2021/08/02/the-philippine-economy-under-the-pandemic-from-asian-tiger-to-sick-
man-again/

Fallesen, D. (2021, November 10). How COVID-19 impacted vulnerable communities in the
Philippines. World Bank Blogs. https://blogs.worldbank.org/eastasiapacific/how-covid-19-
impacted-vulnerable-communities-philippines

Lavrakas, P. J. (2018). Computerized Self-Administered Questionnaires (CSAQ). Sage

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https://methods.sagepub.com/reference/encyclopedia-of-survey-research-methods/n85.xml

Thomas, L. (2020, October 02). An introduction to simple random sampling.

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20random%20subset.

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https://www.scribbr.com/statistics/inferential-statistics/

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