In Philippines, the Consumer Price Index or CPI measures changes in the prices

paid by consumers for a basket of goods and services.

“Inflation has never been a direct factor in political popularity. But if public
perception is that the government is not doing anything about it, then it
becomes a problem, it becomes political,” said Ramon Casiple, a well-known
political analyst.

DIFFERENCE IN INFLATION RATES OF AQUINO AND DUTERTE ADMINIST

ATION

Duterte’s ambitious economic agenda is geared towards the poor and at the
heart of it is the massive plan to overhaul roads, ports, railways and airports -
which would create jobs, attract more investment and boost competitiveness and
domestic spending.

The government calls it “Dutertenomics”, and the TRAIN law was intended to
at least partially fund the initiative.

Now, the big challenge for Duterte’s government is ensuring that a plan geared
towards helping his political base doesn’t end up alienating it.

INFLATION 2017

Philippine inflation, or the movement of prices of basic goods and services, remained steady at
3.3% in December last year, similar with that of November 2017, data from the National
Economic and Development Authority (NEDA) showed.

The steady inflation rate in December, meanwhile, brought full-year 2017 rate to 3.2%, which
was within the government’s target of 2% to 4%.

The 3.2% inflation rate in 2017, however, was the highest since 2014, when it averaged at
4.1%.

This was also higher than 1.8% inflation rate recorded in 2016. (READ: ADB retains PH growth
outlook, sees no signs of economy overheating)
The Bangko Sentral ng Pilipinas (BSP) said the average inflation rate in 2017 was higher than
2016 mainly because of the "higher international crude oil prices."

BSP Governor Nestor Espenilla Jr. said on Friday, January 5 the central bank would be on the
lookout for any risks to the inflation outlook, ensuring the country's monetary policy stance
remains consistent with sustaining price stability conducive to economic growth.

The Monetary Board of the BSP expects inflation to pick up to 3.4% this 2018, due to the
implementation of the Republic Act 10963 or the Tax Reform for Acceleration and Inclusion
(TRAIN) law last Monday, January 1.

The inflation rate, however, is seen to ease again to 3.2% in 2019.

"Robust domestic economic activity, ample liquidity, and well-anchored inflation expectations
continue to support within target inflation," Espenilla said.

https://www.rappler.com/business/192977-inflation-rate-philippines-december-2017
WHY DID INFLATION RATE IN 1984 REACHED 50.3 PERCENT?

For one thing, Marcos pursued massive government spending since his first term
(1965 to 1969). He also continued the protectionist industrial policies of the past,
which implied that imports remained well in excess of exports.

Both these strategies depleted our foreign currency reserves to alarming levels in
the late 1960s. This deterioration could have been abated if the peso were free to
adjust according to supply and demand. But then it was still adamantly fixed.

Hence, there was mounting pressure for government to abandon the fixed
exchange rate.

Ultimately, government succumbed. Our fast-depleting reserves could only be

replenished by borrowing from the International Monetary Fund (IMF), but they
would lend only if the Philippine government devalued its peso once more.

Debt moratorium

But what really led to the historically high 50.3% inflation rate in 1984 was the
country’s worst postwar economic crisis, brought about by Marcos’ pernicious
policy of debt-driven growth and crony capitalism.

We came to a point where we buried ourselves in so much debt that we just said
in 1983 we couldn’t pay any of it (a so-called “debt moratorium”).

This, of course, did not reflect well on our global standing as a borrower, and no
lender dared touch us with a 10-foot pole.

We had no choice but to secure another round of emergency funds from the IMF,
but this time they were stricter and lent only on the condition of a painful – if
harsh – devaluation of the peso. Hence, the movement from P10 to P14 per USD
in 1983.

The paucity of foreign currency reserves meant we could import but a few capital
goods from abroad. Together with the inevitable rise on interest rates (which
further stifled economic activity), this precipitated the country’s worst postwar
recession, where the economy contracted by 7% for two straight years, in 1984
and 1985.
INFLATION IN 2020 (FEBRUARY)- NCOV AND AFRICAN SWINE FLU
https://tradingeconomics.com/philippines/consumer-price-index-cpi

The annual inflation rate in the Philippines unexpectedly fell to 2.6 percent in
February 2020 from the previous month's eighth-month high of 2.9 percent and
missing market consensus of 3 percent. Prices rose less for food & non-alcoholic
beverages (2.1% vs 2.2% in January), alcoholic beverages and tobacco (18.2%
vs 19.2%), housing & utilities (1.7% vs 2.5%), and transport (1.8% vs 3%).
Meanwhile, inflation was unchanged for clothing and footwear (at 2.7%), health
(at 2.9%), communication (at 0.4%), recreation and culture (at 1.5%), education
(at 4.7%) and restaurants and miscellaneous goods & services (at 2.6%). At the
same time, cost of furnishing & routine maintenance increased faster (3.5% vs
3.1%). On a monthly basis, consumer prices fell 0.2 percent, after a 0.6 percent
gain in January.

INFLATION IN 2020 (JANUARY)- TAAL ERUPTION

Philippines Inflation Rate Hits 8-Month High in January

The annual inflation rate in the Philippines rose to 2.9 percent in January 2020
from 2.5 percent in the previous month and above market expectations of 2.8
percent. It was the highest inflation rate since May last year, as prices advanced
further for food & non-alcoholic beverages (2.2% vs 1.7%% in December),
reflecting disruptions caused by the Taal volcano eruption and lingering effects of
typhoons on crops; housing & utilities (2.5% vs 1.9%); transport (3% vs 2.2%)
and alcoholic beverages & tobacco (19.2% vs 18.4%), after the implementation
on January 1st of an excise tax hike on alcohol, tobacco and fuels. Meanwhile,
cost of restaurants and miscellaneous goods & services slowed (2.6% vs 2.7%).
Also, inflation was steady for furnishing & routine maintenance (at 3.1%); health
(at 2.9%); and communication (at 0.4%). On a monthly basis, consumer prices
rose 0.6 percent, after a 0.7 percent gain in December. less