Perhaps you already know that I’m regularly posting articles about the inflation rate in the Philippines because I believe it is one of the good information that everybody should know. I hope more and more people would take a time to learn how inflation affects our daily life and the economy of our country as a whole.
Even the government is greatly concerned with inflation because it is one indication of the economic stability of a country. If there is a hyper inflation, many people would not afford to buy the basic necessities in everyday living because food and other commodities will be very expensive.
Deeper knowledge about inflation would be also very beneficial when deciding where to invest your money. We want an investment that will beat inflation because in doing so, you can preserve the buying power of your money that you put in that investment and at the same time get a profit.
The reliable sources of information about inflation can be obtained from NSO, BSP and NCSB. These are the some of the government and non-government agencies that regularly monitors the inflation in the Philippines.
In the month of January 2012, we could see that inflation rate is at 3.9%. This figure is lower than the inflation rate recorded last month, December 2011 at 4.2%. The following table gives details on the inflation rate in December 2011, January 2012 and the year-to-date inflation rate.
Year-on-Year Inflation Rates, All Items
|Jan 2012||Dec 2011||Year-to-date|
There are several factors that affect the fall of inflation this month. One good factor why the inflation increase or decrease is the law of supply and demand. When there is a high demand for a something like rice, the tendency is its price will increase making the inflation also to increase.
Last time, I mentioned that inflation is not that bad as it is because it is natural for an economy to have inflation as the time goes by. The important thing about this inflation is to control it so that prices of commodities and services will be in the affordable range of the consumers like us.