“Disadvantages of the Fluctuating Inflation Rate in the Philippines”
Inflation has been one of the most controversial issues tackled and
worried about by people this year (2022). Fernando (2022) concluded that,
“Inflation is a rise in prices, which can be translated as the decline of purchasing
power over time.” One of the main reasons for the rise in inflation was the
pandemic. Many employees lost their jobs; businesses closed down; as a result, the
supply of money is increasing and gradually losing its value as gold is consumed
faster than ever. The war between Ukraine and Russia, which has affected not only
the Philippines’ economy but the entire world, buying and trading between
countries had been difficult, particularly with regards to fuel. As a result, global fuel
prices rose, affecting the Philippines. Our country is well-known for being
impoverished and having fewer resources than other countries.
Dela Cruz, Lema (2022) stated that “Philippine Inflation surged to the highest
level in nearly four years in June.” Many people believe that inflation will remain
high for the rest of the year, as it is currently at 6.1% and is expected to rise 7.2%
(Consumer News and Business Channel, 2022). Filipinos and people around the
world have been suffering greatly since the pandemic began in 2019, and now
inflation is a new burden they must bear. This could undermine everything the
Philippine government has to offer its people. We Filipinos are all aware of how
intractable and widespread poverty is in the Philippines. At this point, what we can
do is to help ourselves survive the difficulties of being financially unstable. This
inflation lowered investment rates, economic growth rates, and international
competitiveness, decreased the real value of savings and government, and
destroyed the economy (Economics Help, 2018).
This inflation perplexed the government and the public. Poverty has increased
dramatically during the past eight months. By changing the interest rates and bank
reserve requirements to either increase or decrease the money supply, the Central
Bank of the Philippines can play a significant role in lowering this inflation (The
Manila Times, 2022). By collaborating correctly with the government, particularly
with COVID-19, which greatly contributed to a significant increase in inflation,
people can also help to lower this inflation. Nevertheless, despite the difficulties we
face in life, if we work together, we can overcome inflation that will help everyone,
including all the classes of people, the poor, the middle, and the upper class.