Understanding Inflation in the Philippines by Jehanne B. Racman Inflation, the persistent rise in the general price level of goods and services over a period, is a crucial economic indicator that impacts individuals, businesses, and policymakers alike. In the context of the Philippines, understanding the dynamics of inflation is essential for fostering economic stability and sustainable growth. In its essence, inflation erodes the purchasing power of money, making it imperative for economists and policymakers to comprehend its root causes and implications. Demand-pull inflation, triggered by increased consumer demand, and cost-push inflation, resulting from rising production costs, are common factors driving inflationary pressures. Inflation Trends in the Philippines Over recent years, the Philippines has experienced fluctuations in its inflation rate, influenced by various domestic and international factors. From the sharp spike in inflation in 2018, primarily attributed t...