Inflation hits 14-year high of 11.4%

Here’s bad news #1: the country’s inflation rate in June 2008 jumped to 11.4% due to surging prices of food and fuel as well as the weakening value of the peso against the dollar.

The figure was above the Bangko Sentral ng Pilipinas (Central Bank of the Philippines)’s forecast range of 10.4-11.2%. It was also the fastest pace in 14 years since May 1994 when inflation was recorded at 11.5%.

Last quarter, the country’s inflation already reached 9.6%, already one of the highest in recent years.

Inflation refers to the overall change in prices between two periods. An 11.4% inflation rate means that the same commodity being sold a year earlier for P100 now sells for P111.40.

The BSP is trying to arrest the surge of inflation by raising interest rates but with oil expected to breach $150-a-barrel anytime soon and the Philippine Peso depreciating, controlling inflation will not be an easy task.

Try to look for additional money sources because if you rely on your current income alone, with rising inflation, the value and purchasing power of your money will be less than before.

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