UP Ibalon Bicol: RP’s rising inflation rate: highest in 17 years

RP’s rising inflation rate: highest in 17 years

9/06/2008 | Posted by mesiamd | Edit Post

The American Heritage Dictionary defines inflation as a persistent increase in consumer prices or a lowering of the purchasing power caused by an increase in currency and credit beyond the proportion of available goods and services. It is said that if the supply is equal to the demand, there should be no inflation. But in the real world this doesn’t happen so often and inflation is as shifty as it fluctuates with the economy. It is rampant from the United States, Europe, and Asia and elsewhere in the world as one sees in the chart.

Inflation Rate (%)
Egypt------------------23
France-----------------3.6
UK---------------------4.4
Italy-------------------4.1
Japan------------------1.9
Spain------------------5.3
Denmark--------------4
Norway---------------4.3
Czech Republic------6.7
China------------------6.3
Bulgaria--------------14.4
Germany--------------3.3
Philippines-----------12.2
Romania---------------9
USA-------------------5.6
Zimbabwe-----------2.2 million %

The Philippines’ 12.2% national inflation rate of July has increased to 12.5% in August 2008 driving it up to a 17-year high, pushing the prices of commodities to rise. The new inflation rate is at the high end of the central bank’s prediction range of 11.8 to 12.6%. Philippine provinces are affected more than the National Capital Region.

“The central bank will have September inflation data before its next rate decision on Oct. 9 and many analysts said the monetary authority may raise rates for a fourth and final time next month to bolster the weakening peso and because domestic inflationary pressures are still prevalent.” Philstar (O9/06/08, Ferriols, D.)

In a quick reassuring statement by monetary officials (the usual they do with bad news) there are “moderating” factors that may cut down prices. Banko Sentral ng Pilipinas (BSP) governor Amando Tetangco, Jr blames external factors like the fluctuations of fuel prices as the main reason for the rising inflation trend. (Photo Credit: Ian Riley)=0=.