Philippines' inflation rate hits 11.4% — highest in 14 years!

James Ryan Jonas

Here’s one sad, bad news for all of us: the Philippines’ inflation rate in June 2008 jumped to 11.4% — the highest ever recorded in the last 14 years.
The figure was beyond the Bangko Sentral ng Pilipinas (Central Bank of the Philippines)’s forecast range of 10.4% to 11.2%.
It was the fastest pace in 14 years since May 1994 when inflation was recorded at 11.5%.
The increase in inflation is attributed to surging prices of food and fuel, as well as the weakening value of the peso against the dollar.
During the previous quarter, the country’s inflation stood at 9.6%, also 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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James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.