HOW INFLATION ON CONSUMER GOODS AFFECT THE DAILY LIVES

OF

GRADE ELEVEN STUDENTS OF SECTION MABINI IN

CALOOCAN CITY BUSINESS HIGH SCHOOL

A.Y. 2022 - 2023

A Research Paper Presented to the:

FACULTY OF SENIOR HIGH SCHOOL

CALOOCAN CITY BUSINESS HIGH SCHOOL

URDUJA VILLAGE, CALOOCAN

In partial fulfillment of the requirements in Practical Research 1

Submitted by:

BACLAYO, JEMARIE C.

BULAONG, TEN-TEN P.

CABULAY, KURT BRYSON V.

DANAO, EVE EUXINE C.

MALINAO, VIN REEDICK M.

 CHAPTER 1

INTRODUCTION

Background of the Study

Inflation is an economic term that refers to an environment of generally rising prices of goods

and services within a particular economy. It measures how much more expensive a particular

set of goods and services has become over a given time period, typically a year. Inflation has

plunged countries into long periods of instability (Ceyna Oner, 2017). In the year two

thousand twenty-two (2022) the Philippines' average inflation rate stood at five point eight

percent, higher than the two thousand twenty-one (2021) average inflation rate of three point

nine percent. Contrary to government officials’ and economists’ expectations, the

Philippines’ inflation rate spiked to eight point seven percent in January of year two thousand

twenty-three (2023) instead of slowing down. The Philippine Statistics Authority reported on

Tuesday, February seven, that the January figure is the highest since November two thousand

eight's (2008) nine point one percent . It hitted a fourteen-year high fueled by rising food,

housing and utility costs, according to the latest government numbers released this week. The

country saw inflation rise steadily — fueled by, among other things, a combination of

lingering pandemic economic woes and a spike in global fuel and food prices caused by

Russia’s invasion of Ukraine. The impact was felt the most among middle and lower-class

Fillipinos whose daily wages cannot keep up with the rising costs of basic goods like eggs,

dairy products, and rice.

With this, the research study aims to assess the effects of inflation on the daily lives of Grade

Eleven HUMSS - Mabini students, and on what degree and how it is affecting them. We have

divided it into three main objectives; know the impacts of inflation on students of Grade

Eleven HUMSS - Mabini, determine their coping mechanisms and strategies to overcome

challenges amidst inflation, and determine what situations or cases does inflation affect them.
 Statement of the Problem

This research sought to find out the effects and dilemmas of the sudden, rapid, and excessive

inflation that the students of Grade Eleven HUMSS - Mabini have been living through each

day. Specifically, it would give clarifications to these questions:

1. How has the current inflation affected the purchasing power of the students' families?

1.1 Where do they mostly observe it?

2. Has the inflation affected the qualify of life or financial stability of the students?

2.1 What is the correlation of it with the budgeting and daily spending of their families?

3. Would there be any effects on the students' future plans? What would it be?

3.1 What is their strategies to cope up or prepare for it?

 Questionnaire

1. How has inflation impacted your family's purchasing power for everyday items, such as

food, clothing, and transportation? Can you provide any specific examples or experiences?

2. In your opinion, do you believe that inflation has affected your quality of life or financial

stability? How has this impacted your day-to-day decision making and budgeting?

3. How do you think inflation and the rising cost of common goods will affect your future

plans, such as attending college or entering the workforce? What steps, if any, are you taking

to prepare for these potential financial challenges?

 Methods and Sampling Techniques Utilized

The sampling method used in this research is convenience sampling. In this type of sampling

method, those who are accessible and willing to participate can partake onto this study. The

researchers will collect data through a questionnaire. Given the limited amount of time, it will

be conducted through an online tool for the convenience of both the researchers and

respondents. The questionnaires contain questions about their purchasing power, quality of

life, strategies to cope up, etc. It will only contain open-ended questions. The questionnaires

will then be distributed to them, giving them a maximum of thirty minutes to answer. The

respondents will be instructed to answer honestly and with consent. The collected data will

then be compiled, and by using thematic analysis, the theme will be formulated, through

critically reading and analyzing the data. These sets of data will be carefully taken care of by

the researchers to ensure the accuracy and reliability of this research.

 Significance of the Study

This study will be undertaken to know how the inflation on consumer goods affects the daily

lives of Grade Eleven HUMSS - MABINI students at Caloocan City Business High School.

This study will help them become informed and aware of what inflation is and how it will

affect their daily lives. Not in a general way, but this study will help them to know, explore,

and understand the specific effects, the possible solutions, and the underlying reasons how it

affects them. Students face diverse difficulties in terms of budgeting their allowance, and one

of the reasons behind this is the inflation or the continuously increasing price of consumer

goods. Being informed and aware about inflation will help them understand what causes it

and how to somehow reduce it or find ways that will help them as students cope with it.

This study is conducted to benefit the following:

Students: They will acknowledge the effect of the inflation rate in some areas of the

economy. Hence, they will learn to monitor and decrease their expenses based on necessities.

Parents: This study will help guide them to understand how inflation rate plays a big role in

maximizing the expenses on consumer goods. Thus, helping them minimize the budget

properly for their family.

Teachers: This study will help them to be aware of the situation of the students after inflation

affects their lives and find out ways how they can help students manage their daily

allowances as well as managing their expenses based on necessity. As public servants, this

will also serve as a guide for them to educate more students about the said topic.
Government: This research will help them in a way that they can use the insights to create a

solution to manage inflation and its impact. This study will also be an eye-opener for them to

hear and to know the thoughts, opinions, experiences, and struggles of their fellow citizens.

Future Researchers: This research will give them advanced knowledge from the insights

gained. Therefore, help to construct a well-founded study about the impact of inflation and

generate a solution to lessen its effect.

 Scope and Delimitation

This research aims to study the lingering effects of the current inflation in the lives of Grade

Eleven HUMSS - MABINI students. This will feature the purchasing power of their families,

quality of life, and strategies to cope up.

This research will target the students of Grade Eleven HUMSS - MABINI students in

Caloocan City Business High school (CCBHS). It will not include students outside of the

section as the researchers will only focus on this specific group of students. The researchers

will also only touch things that will be relevant to the research, such as the budgeting of the

students' families.

This research will also be conducted for about three to five days, for this will be done through

an online tool and can be finished in a few days.

 Hypothesis

1. Inflation has negatively impacted the purchasing power of the students' families for

everyday items, they mostly observed this when buying things at grocery stores.

2. The quality of life or financial stability of students has been impacted by inflation that

caused them to limit their budget and daily spending.

3. The students will be pursuing college courses that provide more stable jobs, they will also

start saving up money for potential financial challenges.

 Definition of Terms

Allowance - Allowance is an amount of money given or allotted usually at regular intervals

for a specific purpose.

Consumer Goods - Consumer goods are products bought for consumption by the average

consumer. Also called final goods, consumer goods are the end result of production and

manufacturing. Clothing, food products, and dishwashers are examples of common consumer

goods.

Economy - A group of institutions and organizations that are involved in the production and

distribution of resources in a society.

Income - Income refers to the money that a person or entity receives in exchange for their

labor or products.

Inflation - Inflation is a rise in prices, which can be translated as the decline of purchasing

power over time. The rate at which purchasing power drops can be reflected in the average

price increase of a basket of selected goods and services over some period of time.
 CHAPTER 2

Review of Related Literature

2.1 INTRODUCTION

A significant economic issue, inflation has a variety of effects on both people and

civilizations. It describes the steady rise in the average price of goods and services over time

in an economy. All ages and socioeconomic groups, including high school pupils, are

susceptible to inflation. This review of related literature aims to explore the effects of

inflation on common goods on high school students.

2.2 Impact of Inflation on Purchasing Power

One of the most significant effects of inflation is its impact on the purchasing power of

individuals. As the price level of goods and services increases, the amount of goods and

services that can be purchased with a fixed amount of money decreases. This can have a

particularly strong impact on high school students, who often have limited financial

resources. A study by Abbot and De Vita (2018) found that inflation had a negative impact

on the purchasing power of college students, who are also likely to face similar financial

constraints as high school students.

2.3 Effects on Quality of Life and Financial Stability

Inflation can also have a significant impact on the quality of life and financial stability of

individuals. A study by Raza and Khan (2017) found that inflation had a negative impact on

the quality of life of Pakistani citizens, with the rising cost of essential goods and services

being a major contributing factor. Similarly, a study by Chowdhury (2016) found that

inflation had a negative impact on the financial stability of individuals in Bangladesh, which

can have a ripple effect on other aspects of their lives.

2.4 Behavioral Response to Inflation

Inflation can also have a significant impact on the behavior of individuals. For example, a

study by Kwon et al. (2020) found that inflation can lead to changes in spending behavior,

with individuals becoming more cautious and reducing their spending on non-essential items.

Similarly, a study by Elger and Weber (2018) found that inflation can lead to changes in the

perception of risk, with individuals becoming more risk averse.