The worsening inflation as reflected in the increase in fuel prices and prices of basic commodities had not only hogged the headlines but also preoccupied the minds of Filipinos across the country.
Anyone with a basic or middling knowledge of economics knows that oil prices determine the rate of inflation. If they go up or down, so do the prices of basic commodities.
There are economists who believe that the inflation rate is influenced by the volume of money circulating in the economy with more circulated money causing inflation.
Also being considered is the law of supply and demand or the availability or scarcity of a commodity as contributing to high inflation such as the rice shortage.
Last September, the inflation rate reached 6.7 percent, the highest since February 2009. With the high inflation rate come changes in spending habits among Pinoys and this is where the pain starts for most of us.
With reduced demand due to high prices come reduced production from manufacturers and this is followed by unemployment as workers are laid off.
Obviously higher inflation, despite the insistence of many loyalists, hurts the poor more than the wealthy.
Despite this, as a student I believe we can do something to cope with inflation by spending only when necessary. Instead of complaining, let’s roll up our sleeves and be optimistic, confident that we can endure and weather this economic storm.
Justine Kate Paquibot and Gayle Dela Torre
-Bachelor of Arts in International Studies, University of San Jose-Recoletos (USJ-R) Cebu City
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