RE: Comment Activity: How is Inflation Affecting You in Your Country?

Question 1: How does the inflation in your country affect you?

Answer:

The typical narrative about inflation is inaccurate and misleading. In addition to the usual excuses such as labor unions, greedy businessmen, rising prices of oil, and the consumers, our President shifts the blame to international forces. He calls the national inflation rate inaccurate and points his finger at “imported inflation” and describes the country’s higher inflation as an outcome of a global problem that has affected imported goods. And so, for the President, inflationary forces are out of their control. He disagrees with a 6.1% inflation rate in the month of June and a 6.4% last July. For him, these numbers are misleading. The country’s target is 4% or less.

An independent news portal reported otherwise. The last time the country suffered the high inflation that we are experiencing right now was in November 2018. The numbers look even more alarming on a per-region basis. The inflation rate outside of the National Capital Region is 6.3% and in some regions is as high as 7.5%. One statistician said that the purchasing power of the Philippine peso has declined and that the value of 1.00 Php in 2018 was worth just 0.87 Php in June 2022.

As for the impact of inflation on our family, it affects us not only financially, but also psychologically and our relationships as well. Due to rising prices of goods and services, our usual income is no longer sufficient to provide for our needs. It makes us worried about the future of our kids wondering where we can find the extra fund we need for their education.

Reference

Question 2: What precautions do you take against inflation? Or what kind of tools do you use to be less affected by inflation?

Answer:

A person that does not have much capital can do little to protect himself against this inflationary attack. In my small way, all I can do is think long-term and use my monthly savings for micro-investing in digital currencies.