argumentative essay about inflation rate in the philippines

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Inflation IN THE Philippines

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Inflation in the philippines.

In this essay i choose to tackle about inflation. In recent months, the country has been experiencing rising prices of goods and services. In every country, the government has specific measures to control inflation. If a country's inflation rate is too high, the country may suffer from slow economic growth. With inflation, prices of goods and services steadily increase. The effects of inflation to the economy are great. Commonly, people expect prices of goods and services they buy the most to rise faster than overall prices. Inflation is a monetary phenomenon where prices rise over time. Rapid inflation makes the economy very unstable and can cause people to lose their wealth, especially if they had invested it in something unproductive like bonds. Inflation affects everyone and everything which means theres no one sector or type of person that can be immune from it. Inflation should never be viewed as a sign of healthy economic progress. Here in the Philippines the inflation rate climb to 6% in September 2022 from 6% in August, topping market forecasts of 6% also based on i research it says It was the highest print since February 2009, above the central bank's target of between 5 to 6% for the month, with food prices rising the most in near four years. Some products increase and also the bills like electricity bills, water bills and etc. The problem that we are facing now is first lack of sugar and lack of gas and oil, so many buyer demand that the other product or other item is to much in their price, this part of the inflation cause the prices that they sold is getting higher and higher every month so many people make a good decision about it, they buy their needs

like foods, water, clothes and many more. Have you ever noticed how your grocery budget is limited each year by the 1,000-peso bill? This is because inflation is responsible for raising prices over time. When a currency loses value, prices rise and fewer goods and services are purchased. This loss of purchasing power affects the general cost of living for the general public and slows economic growth. In general, inflation is a broad measure of a country’s cost of living. The Philippines is concerned about rising inflation rates in 2022 because it will affect everyone’s purchasing power more than it has done so far. I've search the current Philippines inflation rate so it says "The Consumer Price Index for Philippines is 116 for the month of September 2022. The inflation rate year over year is 6% (compared to 6% for the previous month). Inflation from August 2022 to September 2022 was 0%." So as you can see here in goes higher and higher so it means the products go higher and higher just like i said, beverages,footwear, restaurant there items is a bit high because they don't have a supply like in the restaurant for example Jollibee the best selling brands because of their crispy and juicy tenderness chicken joy. But the price of this is a bit higher than before cause of lack of supply so they make a decision to put a little or to make the price high so they won't lose business even they are rich. Also the other foods like sea foods, pork ,fish this might be affected of inflation because the lack of supply and also the payment to the supplier because they demand that the price is high than before so many foods that we eat is a bit higher than before so many people eat some cheap foods but healthy foods for our body.

• Multiple Choice

Course : general academic strand (GAS1)

University : pamantasan ng lungsod ng pasig.

Essay on Inflation In Philippines

Students are often asked to write an essay on Inflation In Philippines in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Inflation In Philippines

What is inflation.

Inflation means the prices of things we buy are going up. In the Philippines, when prices rise, it becomes harder for people to afford food, clothes, and other items. This can happen when there’s too much money to spend but not enough goods, or when the cost to make products goes higher.

Inflation in the Philippines

The Philippines often experiences inflation. This can be due to natural disasters affecting crops, changes in global oil prices, or government actions. When inflation occurs, Filipino families might struggle to buy what they need, which can be tough for everyone.

Effects on Daily Life

Because of inflation, families in the Philippines might have to change how they spend money. They may buy less food or cheaper items to save money. Sometimes, even going to school or getting healthcare can become more expensive, making life challenging for many people.

250 Words Essay on Inflation In Philippines

Understanding inflation in the philippines.

Inflation means the increase in prices of things we buy, like food, clothes, and toys. In the Philippines, just like in other countries, prices can go up over time. This can make life hard for families, especially if they don’t have a lot of money.

Causes of Inflation

In the Philippines, inflation can happen for many reasons. Sometimes, if there’s a problem with growing food or if there’s a big storm, there might not be enough of it, and this can make prices go up. Also, if the money in the Philippines becomes less valuable compared to other countries’ money, things that come from other countries can become more expensive.

Effects of Inflation

When prices go up, it’s tough for people. They might not be able to buy as much with their money, and this can be stressful. Parents might have to work more to earn more money, and sometimes, kids might not get new toys or clothes as often.

What the Government Does

The government in the Philippines tries to control inflation. They can change how much money is in the economy or make rules about prices to help keep them from going up too fast. They do this because they want to make sure that people can afford what they need.

Inflation in the Philippines is a challenge that affects everyone. It’s important to understand why it happens and how it changes the way people live. While it can be tough when prices go up, the government works to manage inflation for the good of the country.

500 Words Essay on Inflation In Philippines

Inflation is when the prices of things we buy go up. Imagine you could buy a toy car for one peso last year, but this year the same car costs two pesos. That’s inflation: the money you have buys less than before. This can happen with toys, food, clothes, and almost everything. In the Philippines, like in many countries, inflation affects how people live because they need more money to buy the same things.

Causes of Inflation in the Philippines

In the Philippines, inflation happens for a few reasons. Sometimes, when there are not enough goods like rice or vegetables, prices go up because many people want these items but there aren’t enough for everyone. This is called “demand-pull inflation.” Another reason is “cost-push inflation,” which is when the cost to make products goes up. For example, if the price of gas increases, it costs more to deliver goods to stores, so the prices of these goods go up.

Also, when the money value in the Philippines goes down compared to other countries’ money, things we buy from other countries become more expensive. This is known as “imported inflation.”

Effects of Inflation on People

Inflation can make life hard for families. Parents have to spend more money on the same things, so they might have less money left for saving or for fun activities. Kids might notice that their allowance doesn’t buy as much candy or toys as it used to. If inflation is high, people might worry about prices going up even more and rush to buy things, which can make inflation worse.

How the Government Handles Inflation

The government of the Philippines tries to control inflation to make sure prices don’t rise too fast. The Central Bank of the Philippines can change interest rates, which is like changing the cost of borrowing money. If it’s more expensive to borrow money, people and businesses might spend less, and this can help slow down inflation.

The government can also use policies to help make sure there is enough supply of goods. For example, they can encourage farmers to grow more rice or make it easier for stores to get products from other countries when there’s not enough supply in the Philippines.

What Can People Do?

People can also do things to handle inflation. Families can plan their spending and look for better prices before buying something. It’s important to learn about money and how to use it wisely, especially when prices are going up.

Inflation in the Philippines is when prices rise and money buys less. It can be caused by not enough goods, higher costs to make products, or the country’s money value changing. Inflation affects how people live, but the government and people can take steps to manage it. By understanding what inflation is and how it works, even school students can be better prepared to deal with it in their daily lives.

That’s it! I hope the essay helped you.

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Free Inflation Argumentative Essay Example

Type of paper: Argumentative Essay

Topic: Government , Inflation , Economics , Money , Economy , Policy , Taxes , Shopping

Words: 1200

Published: 08/06/2021

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Inflation is the continuous increase in the general price levels of commodities in the economy over a period. It is identified with the market fall of the value of money in a particular economy. This recurring price increase erodes the purchasing power of money creating economic distortions and uncertainty (Sargent 2002). Inflation may also be described as a sudden increase in supply of money in a given economy. This results to each unit of currency buying fewer commodities thus a reduction in the purchasing power per unit of money. It can also be viewed as an increase in the supply of money at a rate that is higher than the rate of production in the country's economy. When this price increase is gradual and irregular, it leads to creeping inflation. This is healthy for the economy. It stimulates the economy encouraging social and economic progress. It also makes it easier to adjust relative prices such as salaries employees receive.

While mild and gradual inflation is considered to be an indicator of a healthy economy, inflation above this slow rate has a negative impact in the economy. Taxes imposed to citizens increases with increases in supply of money to the economy. This makes people become more willing to spend because of two main reasons: to purchase commodities before they increase in price and to avoid paying tax on holding currencies. This results to the increase in demand for different commodities thus raising their prices as dictated by price mechanism. This strengthens the rate of inflation and increases the velocity of money; a process referred to as a vicious cycle and is difficult to harness, leading to hyperinflation (Laubach, Mishk, 2001). High inflation rates and hyperinflation lead to bad economic times. As prices rise, the purchasing power of a currency unit decreases thus leading to an increase in uncertainty. This encourages purchasing greasing the vicious cycle while at the same time discouraging savings and investments. Unequal redistribution of money will result. People who receive fixed incomes will continue receiving the same amount which in turn reduces their purchasing power while those on flexible incomes will be able to adjust to inflation. Money will thus be redistributed from those with fixed incomes to those with flexible income. If the inflation rate is higher compared to that abroad, it will lead to deficits in balance of payment resulting from international trade.

Unless it has gone far out of hand, inflation is a controllable. Several approaches can be used to control this. The federal reserve of the U.S counters inflation rates by different fiscal and monetary policies. Fiscal policies come in the form of federal budgeting policies and taxation. However, most market watchers look at financial policies to stabilize the economy. In the US, The Federal Reserve Board's Open Market Committee FOMC is in charge of implementing monetary policies (Sargent 2002). They are charged with the responsibility of limiting or increasing the amount of money circulating in the economy. They make money easier to come by thus encouraging spending to spur economic growth or make it harder to come by when growth rates reach unsustainable levels.

In general, Central Banks in all economies fight inflation by setting high interest rates and reducing the supply of money in the economy. Income policies/ wage and price control policies can be introduced to fight inflation rates. This process all the same has negative effects including distortion of the overall functioning of the economy as it encourages shortages and decrease in quality of commodities. There are several ways used to measure inflation. Consumer Price Index (CPI) is widely used. This approach measures the average prices of a fixed basket of goods and services. This basket of goods reflects what a typical family buys to achieve some desired standard of living in a given period. In the USA, the base set is currently 1982-1984. This base period is adjusted after a given number of years. The Bureau of Labor Statistics (BLS) compiles it on a monthly basis. They weigh each item in the basket according to its total household expenditure share in the base period in order to reflect changes in the index periodically to represent the current household cost of living (Sargent 2002). The items are grouped into eight categories which include: housing, apparel, education and communication medical care and transportation. The three main CPI used are: CPI for all urban consumers, Chained CPI for all urban consumers and CPI for urban wage earners and clerical workers.

Producer Price Indexes (PPI) is another method of measuring inflation by the federal government. It measures average changes in price domestic producers receive for their output using weights attached to their output. It covers virtually all industries. It is compiled monthly by the BLS. Personal Consumption expenditure (PCE) is another method of measuring inflation. The Bureau of Economic Analysis computes it on a monthly basis from the National Income and Products Account NIPA.

Inflation has different economic costs. It has a huge impact on savers, as they lose confidence in money as a real value of saving. It may also lead to higher demand of wages as people anticipate to maintain their current living conditions. Inflation also has an impact on a country's competitiveness and unemployment rate. When a country experiences higher inflation rate than another, it leads to loss in competitiveness worsening their performance in trade. This results to increase in unemployment rate.

Business planning and investment can be disrupted by inflation. Budgeting is made hard due to uncertainties created by rise in prices and costs.Inflation has a couple of other positive consequences associated with it. A stable low rate can allow organizations to raise their revenues, prices and profits and their workers can anticipate an increase in their wages as result (Laubach, Mishk, 2001). Low stable inflation can also help reduce the real value of outstanding debts. A good example is mortgage beneficiaries who benefit from inflation to reduce the real burden on their mortgage.

Fluctuation in exchange rates can also have effects on inflation. Fall in value of the domestic currency against other currencies causes higher import prices. Rising of labor costs that are greater than the improvement in productivity also results into inflation. It is difficult to forecast inflation. Some of the reasons behind this include: volatile energy prices, change in value of currency in relation to other foreign currencies, change in indirect government taxes, volatile food prices and uncertain growth of demand Inflation is a natural phenomenon that a healthy economy must experience. Too high inflation rates and zero inflation rates are, however, harmful to the economy. The government is the entity vested with the responsibility of controlling inflation. When it fails to control it, such negligence will be equated to stealing from its people (Sargent 2002).

Laubach, T. Mishk, F. (2001). Inflation Targeting: Lessons from the International Experience. New Jersey. Princeton University Press. Sargent, T. (2002). The Conquest of American Inflation Princeton paperbacks. New Jersey. Princeton University Press, 2002

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High inflation in the Philippines could be due to dynamic domestic economy

My Cup Of Liberty

By Bienvenido S. Oplas, Jr.

Last week, on April 20, the Inter-Agency Committee on Inflation and Market Outlook (IAC-IMO) led by the Department of Finance and the National Economic and Development Authority (NEDA) held a principals level (Secretaries and Undersecretaries only) meeting to tackle persistent high prices in the Philippines.

Based on first quarter (Q1) or January-March 2023 average inflation rate, the Philippines has the highest level of inflation in East Asia at 8.3% while Singapore had the highest jump, from only 0.7% in Q1 2021 to 6.5% in January-February 2023. There is no March data yet as of this writing. In Europe, the UK, Italy and Germany are still worse off ( see Table 1 ).

The main sources of the Philippines’ high inflation in Q1 were alcoholic beverages and tobacco due to the continued rise in sin taxes; food and non-alcoholic beverages due to some supply disruption plus the sugar tax; transport due to still high prices of oil products; and water-electricity-gas-other fuels due to high oil and coal prices until late February. The high inflation in restaurants and accommodation/hotels could be related to “revenge spending” that started in Q4 2022.

The IAC-IMO proposed short-term solutions that include to “fill the domestic supply gap through timely and adequate importation based on ex-ante supply-demand analysis.” Over the medium- to long-term, the IAC wants to ensure “water and energy security.” This is a better goal than ensuring water and energy affordability. The most expensive, the most non-affordable situations for the consumers are no water and no electricity (blackout).

From this policy direction, I constructed this table of charts of selected commodity prices. Row 1 is energy: WTI crude in $/barrel and Coal (Newcastle) in $/ton. Row 2 is industrials: urea fertilizer in $/ton and steel rebar in CNY/ton. Row 3 is agricultural: corn and wheat in $/bushel. Row 4 is also agricultural: rice in $/cwt and sugar in $/lb.

Energy prices are declining — especially coal that fell below $200/ton since around Feb. 27 — so we should expect electricity prices to decline starting April for May billing. Fertilizer and steel bar prices are also declining, meaning lower cost of farming and construction. The price of corn has stabilized while that of wheat (for bread, pasta, noodles, etc.) is at a low 2021 level. Rice and sugar prices are high or rising so their importation can be minimized if domestic output is good ( see Table 2 ).

Looking at the quarterly growth of GDP in 2022, the Philippines has had the most consistent fast growth at 7.2% to 8.2% per quarter, with full year growth of 7.6% which was third fastest growth in East Asia next to Malaysia with 8.8% and Vietnam with 8.1% (they had outlier quarterly growth of 13%-14% and moderate growth of 5%).

Then there is the labor and employment data for February 2023, released by the Philippine Statistics Authority. The data seems good, very good to me. One, the labor force participation rate (LFPR) is high at 66.6% — it was only 63.8% in February 2022 and 63.3% full year 2021. High LFPR means people are optimistic that they can find good paying jobs, or they can employ themselves via entrepreneurship. Two, the unemployment rate is low, only 4.8% vs. 6.4% in February 2022 and 7.8% full year 2021. Three, the underemployment rate is also low, only 12.9% vs. 14.0% in February 2022, and 15.9% in the full year 2021.

So, both quarterly GDP in 2022 and employment data in February suggest that the Philippines now has a dynamic domestic economy that can sustain growth even if the external and global economy would worsen again like what happened in Q1 and Q2 of 2022. Thus, the persistent high inflation could be due mainly to high domestic consumption, and the high interest rates of the Bangko Sentral ng Pilipinas have not dissuaded many people from parking their money in the banks and opting to spend more instead.

If people can create more jobs for themselves, then government — especially the economic team — can step back from creating new subsidies or expanding existing ones, maybe even stop some subsidies and focus on having a fiscal balance, if not a fiscal surplus, without raising existing tax rates.

The economic team should also resist many groups’ “tax-free” lobbies and, if possible, amend some laws that create double standards in taxation. Like zero tax (import tax, excise tax, VAT, etc.) for intermittent renewables but high excise tax and VAT payment for conventional fuel sources like coal that provides baseload 24/7 electricity to people and businesses.

Finally, the National Government should remind local governments that they should be more business-friendly and not bureaucracy-oriented. I hear more and more stories of city and provincial governments making the extractive sectors (like mining, quarrying and landfilling) get more expensive, more bureaucratic. When land prices are rising fast, this means new land should be created via land reclamation in the sea and land filling of less productive fishponds.

Rising land area coupled with a rising population — which means more producers and consumers, more entrepreneurs and workers — should work to our economic advantage.

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers.

minimalgovernment @gmail.com

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