Introduction

Inflation is a general and ongoing rise in the level of prices in an entire economy. means that there is
pressure for prices to rise in the most markets in the economy, it discusses the historical and recent
experience of inflation, both in the United States and other countries around the world.
Recently, government announced that inflation will possibly happen. President Rodrigo Roa Duterte
was already open up the inflation rate on his SONA's speech. And this august 2018 we, filipinos
experienced the inflation inside our country. Philippines yearly inflation rate rised to 6.7% in september
this 2018 from much lessen rate in the previous month. Basically, it is the highest rate since february
2009, due to a roll in prices of food and the faster rise cost of transport and markets price.
As the time passes, people felt the struggles in budgeting their not enough money for their whole family
needs. Some of us complaining about this because of not affordable market price like for example
increasing price of our daily needs: dry rice, eggs, condiments, meats of chicken, meats of pork, meats of
beef etc. Clothes, appliances and so on. Therefore, almost half of our population in manila started to
debate and protest to stop this matter. It is the most talk about issue now because it's continuously
happening in Philippines.
Throughout the years, inflation rate in the Philippines has become the defining factor of our economic
lifestyle and our own financial status as well. That's why many filipinos are unhappy with how the
government handled rising food prices.
Economist usually oppose high inflation but they oppose within a milder way than many non-
economists. Responding of the community in this inflation most of filipino family in middle class. And
they can't handle this matter so that they making rallies and protest to voice out themselves. Inflation has
disadvantages and also has advantages. The disadvantage of inflation in society is can cause serious
economic problems and even social problems if it causes an economy to stall because consumers cannot
keep up with the rising prices and business cannot afford to pay higher wages or to hire more workers or
purchase equipment to increase output, and also it reduces the value of savings and lastly, it has harmful
economic effects come about from the income redistribution. in the other hand, the advantage of inflation
is to adjust other economic variables so that you can tell how much of, say, the rise on GDP over periods
of time.
The main objective of this research is to collect all the data, information from every Filipino family
members for them to give chance to tell about how and what they're feel about this matter. The
researchers wants to find out what are the reactions, opinions, suggestions or anything, in a different
families in Quezon City about inflation and tell us how they're going to spend and budget their money
smartly even the inflation is now implemented.
We will give our attention for those who are affected on this issue and for whom is willing to give their
opinion about this. We are going to interview some people here in Quezon City at Philippines to know
how inflation affect them. If it is bad or good for them?
This research will benefit most of us filipinos because finally we can give our opinion, suggestions or
complain about this issue, inflation. All of us can be benefited after doing this survey because we are the
one who will be able to stressed thinking how to spend our money correctly or how to manage ourselves
budgeting money. And by this survey we're going to find out what is the formula and solution to solve
this problem.
Literature Review

Business World (2018) stated that Philippine Statistics Authority (PSA) caught the state economic
managers and financial markets by surprise, PSA showed a data that the prices of widely common
used goods in the month of august (2018) in about 6.4% than the month of july’s 5.7% and august
(2017) 2.6%. Bangko Sentral ng Pilipinas (BSP) Department of Economic Research estimated the
August’s pace in range 5.5% to 6.2% as well as the department of finance and the median in business
world’s poll of econiomist estimate a range of 5.4%, the target range of Bangko Sentral ng Pilipinas
(BSP) was higher than previous headline inflation average of 4.8% than it’s upward revised 4.9%
forecast for 2018. Governor Nestor Espinilla of BSP response to a required policy that the only
question is how strong it should be needed to answer and also governor nestor espinilla told the
reposters via mobile phone message after the data was released, he says that “ we will consider all the
latest data updates in determining the strength of our follow through response in the upcoming policy
meeting”. Espinilla said that the centra bank was sticking with its view that inflation will return to its
target by 2019. “the BSP (central bank) still has to continue raising rates to assure consumers and the
market that inflation is well anchored’’, Bank of the Philippine Islands Economist Emilio Neri told
news channel ANC.

It delivers that the inflation is one of the country problem that many people has been so affected.
And it is one of the most out breaking news or happenings in the Philippines because, Filipinos are
starting to adjust themselves on inflation. Relating to this study, the Government can’t handle the
situation because many people are protesting against this. This article talk about the percentage of
inflation on previous and present percentage of continuously high price.

(Michael Bueza, October 2018) In using historical inflation data, the base year of the data should be
taken into account. MANILA, Philippines – The country's inflation rate rose from 6.4% in August to
6.7% in September 2018, according to the Philippine Statistics Authority (PSA). September's
inflation rate is the highest in over 9 years. It was also the 9th consecutive monthly inflation rate
increase, which started in January 2018. The government's economic managers and some
businessmen have said the recent inflation levels are "mere hiccups" and are "manageable." Some
have even attempted to compare the inflation rates against past administrations, to justify the current
levels

According to Michael Bueza research, In using historical inflation data, the base year of the data
should be taken into account, The base year serves as the reference or benchmark "to which a
continuous series of index numbers can be related," and at which "the [CPI] is taken as equal to 100,"
explained the PSA. The inflation rate in Philippine is increasing so fast, from 6.4% on august then
suddenly increase 3% to 6.7% in September, it only takes one month to rise. But for the government it
was just a piece of cake to handle and manage and I think that for them it was a good news. They
think it was better rate compare from past inflation rate.

Rivas (2018) Manila Philippines Inflation, or the movement of prices of basic goods and services,
showed no signs of slowing down as it further accelerated to a new 5-year high of 4.6% in May,
higher than the 4.5% recorded in April. In a news briefing on Tuesday, June 5, the Philippine
Statistics Authority (PSA) said inflation was mainly driven by fish and seafood, fuel and lubricants,
and bread and cereals. The inflation figure in May was within the 4.6% to 5.4% forecast of Bangko
Sentral ng Pilipinas (BSP) economists. The Department of Finance (DOF) forecast was 4.9%.

According to Rivas (2018) the inflation rate was decrease to the expected it is because to the goods
and services. Many people mostly affected in higher selling price and this is the reason why filipino’s
didn’t support they basic needs in everday life. And the way to solve the inflation in our country is
to increase our wage because High inflation can lead to an increase in pay claims as people look to
protect their real incomes. This can lead to a rise in unit labour costs and lower profits for businesses.

MANILA, Philippines – President Rodrigo Duterte admitted that prices of goods, particularly rice,
remain high. His solution? Reviving an ancient form of economic activity: barter trade. In a one-on-
one chat with Chief Presidential Legal Counsel Salvador Panelo aired live on Tuesday, September 11,
Duterte said he is willing to open up barter trade again with Sabah.
-President Rodrigo Duterte stated that his solution to overcome inflation, is the Barter trade. Barter
trade is one of the most ancient economic activities, where goods are exchanged without the use of
cash. President said that, he may set up barter trade again, but it depends if the finance people agree.
He is considering allowing the country's trading with Sabah to pave the way for entry of cheaper rice.
President Duterte said, "When worst comes to worst, I will open Sabah. Everyone will be full. It will
be free for all. Cheap"

In August 2018 Filipinos quering for hours to buy a cheap rice from the Goverment they eating
fewer meals a day to save money.
And they showing anger against president Rodrigo Duterte in social media about the issue.

The pressure started in the year 2018 with a higher products and increases of tax. everything from
electronic gadgets to haircuts to t-shirt cost atleast 10percent according to anecdotal evidence in
Manila. and some people are switching to a cheaper brands or changing routines to adapt.

According to diokno “Let’s not push for higher wages” amid high inflation.
Secretary benjamin diokno sees inflation as a transitory event, and not necessarily a good basis to
adjust wages. Despite the higher prices of goods, diokno said pushing for a wage hike should not be
the way to go. High inflation rate will eventually taper off later this year.
October 3, diokno stated that “the wrong thing to do is to adjust wages on basis of a transitory event.
We see this inflation rate as a transitory. It will fade next year (Adjusting wages) is to worsen the
situation “

Economic managers expect that inflation rate will peak by September. They said the increase in
prices of goods will be within the 2% to 4% range in 2019.
Labor groups protested this is because of higher wages due to inflation, saying that the high rates can
already be considered as a supervening event to adjust salaries. Inflation is the number one problem
of the people who have low salaries and no job. As what i understand on the article that i read is
secretary benjamin diokno want to stop the increasing of goods this is because many people are
suffering in crisis and this because of low salary of the workers. And diokno also stated he sees that
the inflation is just a transitory event or not permanent and it will just fade next year.

Inflation reaches another 5year high and price increases for alcoholic beverages and tobacco;
transportation; as well housing, water, electricity, gas and another fuels.
 MANILA, Philippines- Inflation or the movement of prices of basic goods and services rise to
another 5year high in April 2018. The Philippines Statistics Authority (PSA) announced on Friday,
May 4, that inflation went up to 4.5% in Paril. The PSA attributed the surge to increases in the indices
of alcoholic beverages and tobacco; transportation; as well housing, water, electricity, gas and another
fuels. But it noted that inflation for the food index alone at the natural level slightly used to 5.5% in
April compared to 5.7% in March.

Many Families react about inflation in alcohol, tobacco, transportation and fuels are so much high
changing we know that when fuels are strike and rises anything are changing. So maybe are
government should focus in fuel because when fuel are decrease anything are decrease too and
inflation about alcohol and smokers so it’s not anything for or I’m not affected in inflation in alcohol
and tobacco but some user are not agree about inflation of alcohol beverages and tobacco and it so
much high in price. Normal Citizens this are so much feel the inflation in alcohol and tobacco.

2.1 Problem Statement

1. How much prepared are you when inflation rate occur in phillippines?
2. How inflation increasing rate affects everyone’s financial status?
3. Should we worry about the price increasing? Why?
4. Did inflation rate really affects one’s daily lives? How?
5. During inflation effect, what are the best ways to spend money in a smart way?