Inflation is the rise in prices of goods and services as a result of an increase in the money supply. A rise in the money supply increases the amount of money available to buy goods and services, which causes prices to rise.
Inflation is usually a good thing, as it means that the economy is growing and the prices of goods and services are going up – which is good for consumers. Inflation has a way of balancing out – holding prices steady when they should be going down, and dropping them when they should be going up. But when inflation gets out of control, it can cause a lot of problems.
And when inflation gets out of control, it’s usually because it’s rising too fast.
The Philippines’ significant import dependency, as well as the country’s expanding demand for petroleum products, have resulted in greater inflation.
The BSP attributed this year’s inflation rate to some reasons, including rising oil costs, considerable increases in the pricing of imported commodities, and higher power rates.
To combat this inflation, the Philippine government has some policies in place to keep inflation in check.
Last month, food and non-alcoholic beverages ranked first among the sources of faster inflation, with vegetables, meat, and fish leading the way.
As a result of the prolonged increase in fuel prices, transportation came in second, with higher inflation rates for diesel, gasoline, and maritime passenger transport.
In April, housing, water, power, gas, and other fuels also accelerated inflation, the PSA noted. This commodity group’s fastest-growing sectors were cooking gas, electricity, and rents.
The National Capital Region had the highest inflation rate, which rose to 4.4 percent in April from 3.4 percent the previous month. Outside of the NCR, inflation accelerated, rising to 5.1 percent in April from 4.1 percent in March.
3 Tips for beating inflation this year and in the future:
1. Become debt-free
The best way to avoid becoming debt-ridden is to avoid taking on any new loans. This year, focus on paying off any high-interest loans (such as credit cards)-, and saving more money.
2. Reduce non-essential purchases
Instead of spending money on non-essential items, spend it on necessities. This year, try to reduce the amount of non-essential purchases that you make, such as eating out, going to the movies, or shopping online. You’ll find that you have more money left over to save, which will help you build your savings faster. You’ll also find that you have more money to pay off your debts, which will help you reduce your debt faster.
3. Take advantage of exclusive offers and savings
This year, take advantage of exclusive offers and savings. For example, if your credit card gives you a certain percentage back in rewards for making payments on time, make sure that you’re using that card to pay for your purchases instead of using your debit card. This will help you build your credit score, which in turn will help you qualify for better loans in the future. It will also help you build your credit history, which will help you qualify for better loans in the future.
The best way to beat inflation is to become debt-free by paying off any high-interest loans that you have this year. This will help you build your credit score, which in turn will help you qualify for better loans in the future. You can also consider saving more money this year by cutting down on non-essential purchases. This will help you build your savings faster, which will help you build your financial independence faster.
Build a nest egg that you can rely on in case of an emergency – and save as much as you can while you’re still able to get a decent return on your investments. This will allow you to take care of any expenses that come your way, without having to worry about losing money to inflation. It will also allow you to build a financial safety net for when you’re too old to work – and to enjoy your retirement. Finally, building a nest egg will allow you to live your life to the fullest, without having to worry about money.