On inflation
Last month, the inflation rate climbed to a 6.4% high, exceeding government’s target range of 2-4% with food and beverages topping the list. In the National Capital Region, the inflation rate is felt at 7%.
Taking it from the Banglo Sentral ng Pilipinas, the reason for such spiking can be attributed to the confluence of cost-push factor and the elevated prices of petroleum products. The latter factor greatly affects the cost of transport and the cost of electric p ow er.
In addition, food supply affects the rising infaltion rate particularly rice while adding economic burden to Filipinos whose great majority eat the staple. There is rice shortage in the country, many doubt however if it is natural or artificial.
While both shortages are not good for all of us, the latter is worse considering that it is intentional, perpetrated by rice hoarders and “talented” businessmen in the industry. In both cases, the government must look into the said rice shortage and address the same.
Recently, a warehouse was raided by authorities and found out numerous rice in sacks labeled as imported from China. As far as the country is concerned, we have no rice importation agreement with the said country. In fact, we are not allowed to import rice from China due to our country’s restrictions. We can however import rice from Thailand and Vi et nam.
Going back to inflation, it is defined as the movement of prices of goods and services over time. It is an economic indicator of how a country fares in its economy and is measured by the annual percentage change of consumer price index or the list of goods and their prices. Inflation may be driven by supply and demand.
Inflation likewise happens when the cost of producing goods, the prices of raw materials and cost of wages go up. When there are fewer goods produced due to high costs of production and demand remains consistent, there is inflation.
Inflation means you need to pay more for the same goods and services. As inflation rises, the value of peso diminishes more quickly, menaing there is the reduction of the value of money as consumers are able to purchase less than before.
One of means of addressing the country’s inflation problem is the Salceda solution as discussed by SunStar Pampanga Manager, Tatang Jun Sula in this paper. Definitely we can solve such a woe, it’s only a matter of implementing it.
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