We have heard of an impending acceleration in prices of basic commodities attributed to a surge in expenditure in the last two quarters. Many consumers worry. President Rodrigo Duterte, with 91 percent of the population expressing complete trust in him, should address this Filipino hope not to be affected by increase in prices.
Government is expected to assuage the unabated, burdensome price increase, that especially hit fixed-income earners. Whether a consumer's market basket can afford pricier goods or not, he remains vulnerable. Increased prices, however, are an offshoot of several indicators including political stability.
The populace views inflation as an "economic predator" out in the cold waiting to crush its victims. Inflation has more of its misgivings because it implicitly robs the consumer of purchasing power, giving lesser value to his money when at the helm of even a robust economy. Another effect of unmanageable inflation is an increase in interest rates, depriving the nation of a flourishing investment market.
Article by Emmanuel J. Lopez, Ph.D. This story first appeared in https://www.philstar.com/business/2016/08/11/1612411/understanding-inflation-price-increase-context