Inflation

Then & Now

Pandesal ₱3 Inflation???

₱3

Then NOW
 Menu
Burger . . . . . . ₱ 15 Menu
Fries . . . . . . ₱ 10 Burger . . . . . . ₱ 30

then now
then now
BUS ₱10 BUS ₱50
TICKET TICKET
Salary: ₱ 2,000 Salary: ₱
20,000

then now
 ?
HOW Is inflation

??
measured?
Philippine Statistics
Inflation data
Authority

every

1 st
week
of the month
Statisticians
experts
HOW Is inflation
measured?

and
measure
inflation by looking
?
??
at a "basket of
goods" which
"contain" what the
typical Filipino
consumes on a
regular basis.
WHAT CAUSES INFLATION?

Demand supply
pull driven
inflation inflation

Demand Supply
Unemployment Inflation
Inverse
relationship

• Demand for labor

increases
• Minimum Wage • Rising wage
increases to attract inflation
employees
Source: https://courses.lumenlearning.com/boundless-economics/chapter/the-relationship-between-inflation-and-unemployment/
 Source: statista.com
ti o
fla 3.03%
i n Unemployment
& 2015
n t 0.67%
e Inflation
y m 2.71%
lo
p 2016
e m 1.25%
Un
2.55%
2017
2.85%

2.52%
2018
5.81%

2.41%
2019
2.51%
GDP Inflation
direct
relationship

5 Scenarios
• Produced more at the same prices
• Produced the same amount at higher
prices
• Produced more at higher prices
• Produced much more at lower prices
• Produced less at much-higher prices
Source: /https://www.investopedia.com/ask/answers/112814/why-does-inflation-increase-gdp-growth.asp
Produce more @ Same prices
Production

Unemployment rate

Demand

Wages

GDP Inflation
Produce SAME @ Higher prices
Price

Cost

Supply

Customer expectations

GDP Inflation
Produce MORE @ Higher prices
Demand

Supply

Wages

Prices

GDP Inflation
Source: statista.com

6.07%
on GDP
la ti 2015
0.67%
f Inflation
in
& 6.88%
D P 2016
G 1.25%

6.68%
2017
2.85%

6.24%
2018
5.81%

5.72%
2019
2.51%
NEWS
NEWS
Inflation

85%

60%
55%

40%
 INflation
local
news

INflation international