Addressing Inflation in the Philippines

Promoting Price Stability and Protecting the Vulnerable. Inflation refers to the sustained
increase in the general price level of goods and services in an economy over time. It is often
measured by the Consumer Price Index (CPI) and reflects the erosion of purchasing power. In recent
times, the Philippines has experienced a surge in inflation, obligate the implementation of policies to
promote price stability and protect vulnerable segments of society. Inflation has significant
implications for the economy and society. It affects the cost of living, undermines consumer
purchasing power, reduces investment, and can lead to economic instability. Therefore, addressing
inflation is crucial for maintaining economic growth, ensuring social welfare, and protect the well-
being of the population. Considering the recent surge in inflation in the Philippines, it is imperative to
implement policies that promote price stability and protect the vulnerable segments of society.

The factors contributing to inflation and the impact of inflation on the economy and society in
the Philippines. The main drivers of inflation include rising global oil prices, supply chain disruptions,
and higher food costs. According to the Philippine Statistics Authority (PSA, 2023), these factors have
contributed to the recent inflationary pressures experienced in the country. Studies have shown that
high inflation erodes purchasing power, reduces consumer spending, and can lead to decreased
investment and economic instability. Research by Smith et al. (2022) highlights the negative effects of
inflation on the economy, emphasizing the importance of addressing this issue.

People argue that inflation can have positive effects on the economy. By reducing the real
burden of debt and incentivizing spending and investment, inflation can stimulate economic growth.
This viewpoint is supported by Friedman (1968), who suggests that moderate inflation can be
beneficial in certain circumstances. However, it is important to consider the negative consequences of
high inflation, particularly on low-income individuals and vulnerable groups. Research conducted by
Ravallion (2018) indicates that inflation disproportionately affects the poor, as they spend a larger
proportion of their income on necessities.

JOSH B. BAYOCA ACADEMIC WRITING #7 EAPP

GRADE12 VICTORY POSITION PAPER 06/06/2023

 Inflation poses significant challenges to the Philippine economy and society, affecting the cost
of living and overall economic stability. Rising global oil prices, supply chain disruptions, and higher
food costs are among the factors driving inflation in the country. High inflation undermines purchasing
power, reduces consumer spending, and can lead to economic instability, negatively impacting low-
income individuals and vulnerable groups. To address the issue of inflation and protect vulnerable
segments of society, policymakers should focus on implementing measures such as monetary policy,
supply chain management, and targeted social assistance programs. Through these efforts, price
stability can be promoted, mitigating the impact of inflation on the less privileged. By adopting a
comprehensive approach, the Philippines can achieve sustainable economic growth while ensuring
the welfare and well-being of its citizens.

JOSH B. BAYOCA ACADEMIC WRITING #7 EAPP

GRADE12 VICTORY POSITION PAPER 06/06/2023