•Comes from an excess demand of good and services. •An example is the tendency of Artic countries to order more fuel whenever there is an increase in its cost, further increasing the prices of oil. B. Cost Push Inflation •Comes from a continuous increase in the cost of production. •An example of which is the escalating price of oil in the world market. PHILIPPINE’S INFLATION RATE Year Month 2011 2012 2013 2014 2015 2016 January 4.0 4.0 3.1 4.2 2.4 1.3 February 4.7 2.7 3.4 4.1 2.5 0.9 March 4.9 2.6 3.2 3.9 2.4 1.1 April 4.7 3.0 2.6 4.1 2.2 1.1 M ay 4.9 3.0 2.6 4.5 1.6 1.6 June 5.2 2.9 2.7 4.4 1.2 1.9 July 4.9 3.2 2.5 4.9 0.8 1.9 August 4.6 3.8 2.1 4.9 0.6 1.8 September 4.7 3.7 2.7 4.4 0.4 2.3 October 5.2 3.2 2.9 4.3 0.4 2.3 November 4.7 2.8 3.3 3.7 1.1 2.5 December 4.2 3.0 4.1 2.7 1.5 2.6 Average 4.6 3.2 3.0 4.1 1.4 1.8