Call it the “Arroyo legacy,” credit “Aquinomics,” or simply attribute it to good market fundamentals, but there are more and more reasons now to say that it is indeed more fun in the Philippines — compared to other countries.
Recently Philippine stocks are on new all-time highs, with the market index rising 30% year to date.
The country’s Gross Domestic Product (GDP) has also surged by 7.1% as of the 3rd quarter of 2012, making the Philippines the fastest-growing country in Southeast Asia.
And now, the National Statistics Office (NSO) has announced that the Philippines’ inflation rate has decelerated to 2.8% as of November 2012, the third consecutive month this year that the inflation rate went down.
The country’s year to date inflation is now 3.2%, still below the government’s year to date target of 3.3%.
This 2.8% headline inflation rate was a sharp decline from the 4.8% inflation registered in the same period in 2011, and a further easing in from the 3.1% inflation rate in October 2012.
The Philippines’ comparative monthly inflation rates in 2011 and in 2012 are shown below.
Inflation is the percentage change in overall prices between two periods as measured by a price index. Simply put, a 2.8% inflation rate means that a product costing P100 before is now selling at P102.80.
According to the NSO, the country’s low inflation “resulted from the deceleration in the annual growths posted in the indices of food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; and transport.”
Analysts are saying, however, that inflationary pressure may occur by December 2012.
With increasing domestic demand due to the Christmas season, prices of commodities may rise weeks before the holidays. Inflation may also rise due to temporary but sharp increases in prices of agricultural products resulting from disruptions in supply caused by superstorm Pablo (Typhoon Bopha) that ravaged Mindanao.
Still, the Philippine government believes the country’s inflation rate in 2012 will stay within the lower range of the full-year inflation target of 3-5%.
Graph source: Trading Economics
You should read these other interesting articles:
Philippine inflation rate slows down to 2.8%
About the Author

PSEi support seen at 6,200 and 6,000 amid weaker Peso
In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks
When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)
Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more

Why Filipinos do not become business owners or entrepreneurs
For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more

My experience investing in Mutual Funds in the Philippines
I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more

Income Tax Tables in the Philippines (2022)
The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more

PSE Stocks Performance under each Philippine President (1987-2021)
Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees
Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
Price Floor and Price Ceiling of PSE Stocks
Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.
Good News!