1. What causes inflation?
Inflation is a complex economic phenomenon that can be triggered by various factors such as:
Initiatives taken by the government, such as excessive deficit spending or slack monetary policy,
can cause inflation. Government spending increases without offsetting revenue increases or
prolonged periods of excessively low interest rates by central banks can exacerbate inflationary
pressures.
The price of imported goods will rise if a nation's currency depreciates, which could cause
inflation in the domestic economy. In other words, changes in the value of a country's currency
can affect the prices of imported goods.
Inflation tends to rise when there is an intentionally manufactured demand excess in the
economy because of individuals or entities hoarding goods and not releasing them to the
market.
Governments may lower taxes in an effort to win over citizens, even though taxes are known to
rise over time. The folks are content since they now possess more money. However, if the rate
of output does not rise at a matching rate, the extra money on hand eventually causes inflation.
Inflation can result from a money supply expansion that is too rapid for an economy. People will
have more money to spend if the growth of the money supply dominates that of goods and
services produced.
A state where the overall demand for goods and services in an economy outweighs the supply
or where businesses' production costs rise, which in turn drives up consumer prices.
2. Gross Domestic Product (GDP) in the Philippines from 2020-2022
Year
2020
2021
2022
GDP (in Billions)
$361.8
$394.1
$992
Gross Domestic Product (GDP) in the Philippines from 2020-2022
GDP (in Billions USD)
1200
992
1000
800
600
361,8
400
394,1
200
0
2020
2021
2022
Year
3. Inflation Rate in the Philippines from 2020-2022
Year
2020
2021
2022
Inflation Rate
2.39%
3.93%
5.82%
Inflation Rate in the Philippines from 2020-2022
Inflation Rate (in %)
7
5,82%
6
5
4
3,93%
3
2
2,39%
1
0
2020
2021
Year
2022