The document discusses inflation in the Philippines, which is the rising prices of commodities and goods. Inflation has increased recently due to a surge in demand, higher production costs, and fiscal policies. It negatively impacts society, especially lower income families, by reducing purchasing power and standards of living. Food inflation is exacerbated by a lack of supplies and high fuel prices. As a developing country dependent on imports, the Philippines is vulnerable to inflation. This poses problems as many are still recovering economically from the pandemic. Proper planning and budgeting can help lessen inflation's effects.
The document discusses inflation in the Philippines, which is the rising prices of commodities and goods. Inflation has increased recently due to a surge in demand, higher production costs, and fiscal policies. It negatively impacts society, especially lower income families, by reducing purchasing power and standards of living. Food inflation is exacerbated by a lack of supplies and high fuel prices. As a developing country dependent on imports, the Philippines is vulnerable to inflation. This poses problems as many are still recovering economically from the pandemic. Proper planning and budgeting can help lessen inflation's effects.
The document discusses inflation in the Philippines, which is the rising prices of commodities and goods. Inflation has increased recently due to a surge in demand, higher production costs, and fiscal policies. It negatively impacts society, especially lower income families, by reducing purchasing power and standards of living. Food inflation is exacerbated by a lack of supplies and high fuel prices. As a developing country dependent on imports, the Philippines is vulnerable to inflation. This poses problems as many are still recovering economically from the pandemic. Proper planning and budgeting can help lessen inflation's effects.
The document discusses inflation in the Philippines, which is the rising prices of commodities and goods. Inflation has increased recently due to a surge in demand, higher production costs, and fiscal policies. It negatively impacts society, especially lower income families, by reducing purchasing power and standards of living. Food inflation is exacerbated by a lack of supplies and high fuel prices. As a developing country dependent on imports, the Philippines is vulnerable to inflation. This poses problems as many are still recovering economically from the pandemic. Proper planning and budgeting can help lessen inflation's effects.
During these recent months, there has been a definite increase in
the prices of commodities in the Philippines. This phenomenon is known as inflation, which is the rate at which the price of goods and services increases within an economy. It may be detrimental to society if there is inflation, as it raises the cost of essentials like food, fuel, utilities like electricity and water, and services like healthcare. The main causes of this rise in prices are a surge in demand, an increase in production costs, and fiscal policy. Inflation can be correlated with globalization as it can be greatly impacted by global variables such as currency rates, producer price competitiveness, and commodity prices around the world. A lack of supplies and rising fuel prices are also causing food inflation to soar in the Philippines and many other nations. Considering the recent events, such as the war between Ukraine and Russia, the depreciation of the Philippine peso, and external economic and political conditions, this rise in the prices of commodities was expected.
The value of money as a means of exchange declines during periods
of high inflation. As a result, more money is required to purchase some items because the value of money cannot keep up with the rising costs of goods. Rising inflation creates a big burden for many people around the world. Some people may have to decrease their standard of living and give up pleasures to pay for necessities. Individuals who require extra money for healthcare needs and other services would have to reduce their living expenses. Additionally, the value of real income and savings can be diminished by higher prices, making households poorer. In other words, high inflation tends to aggravate inequality or poverty since it affects lower- and middle- income families' income and savings more severely than it does higher-income households. This poses a problem in our present-day world, as our country has only just emerged from the issues caused by the pandemic. People have only just begun rising and regaining their balance since this phenomenon hit.
The rising price of commodities affects many households, especially
those with little to no income. If the poor are not protected from increases in food prices, their nutrition may be jeopardized because they may be forced to select lower-cost food options since their homes may not have enough food to feed everyone. Increased food costs cause the poor to reduce their food intake and adopt a more imbalanced diet, which has detrimental short- and long-term effects on their health. As the military conflict between Russia and Ukraine continues to disrupt the supply and drive up the price of agricultural goods, as well as fertilizers and other agricultural inputs, food security has grown to be a top concern for countries in the Asia- Pacific region.
As a developing country, the Philippines is especially vulnerable to
inflation in commodities, food, and fuel. In times of high inflation, emerging economies run the risk of their currencies depreciating. When a currency's value declines, its exchange rate falls when measured against other currencies, which affects regional and local economies. According to the Philippine Collegian, a weaker peso means increased prices for commodities, including petroleum and agricultural staples like rice, fruits, and vegetables, in a nation where imports make up a large portion of daily needs. It is important to understand the effects and consequences of inflation so that we are aware of the things that we need to do to avoid being heavily impacted by it.
Not many individuals may be familiar with inflation. Nevertheless, we
all encounter it and are affected by it. It changed my perspective in the way that I recognized the importance of knowing its effects on how I budget my money and consider the possible rise in prices of commodities when investing in something. We can lessen some of the effects of the rising cost of living, including healthcare expenses, by properly planning for inflation. Although we may be enticed to spend generously at times, we should budget our money and savings wisely to be prepared when we are put in this situation once again. Moreover, it also brought to light the effects of this phenomenon on low-income families and how important it is to help others during these times. They are subjected to a lower quality of living as they no longer can afford the rising prices of food and services that they once could. Therefore, it is crucial to address this issue and make plans to deter this phenomenon, even though it is unavoidable.
