“The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” –Ernest Hemingway
Even if government workers in the Philippines enjoy an additional Christmas bonus on top of their 13th month pay, the windfall will only provide a temporary relief from poverty and the daily economic doldrums affecting citizens. For ordinary salaried workers in the country, who will eventually “share the blessings” with family, the Christmas bonus is a temporary orgasm; once Christmas is over, it’s back to reality and the “economic plateau” – a life of inflation.
The Philippine inflation rate is currently 6.7 percent, unchanged since September 2018 but higher than market expectations that pegged the figure at 6.5 percent. While inflation remains at its highest level since February 2009, according to statistics, the more rapid rise in the cost of housing and transport offset a slight slowdown in food prices. Consumer prices rose to 0.3 percent, following a 0.8 percent increase in September.
Between 1958 and 2019, the average inflation rate in the Philippines was 8.40 percent, reaching an all-time high of 62.80 percent in September 1984 and record low of -2.10 percent in January 1959.
Inflation affects everybody and it is a major concern for global economists. Every hardworking Juan dela Cruz should know inflation refers to the measure or rate the cost of goods and services rise and purchasing power declines; as prices increase, monetary value decreases, which prompts consumers to spend less.
Two theories economists have on inflation are cost-push and demand-pull. In cost-push inflation, a sudden rise in the cost of production, coupled with steady or decreasing demand, results in additional production costs being transferred to consumers through retail prices; while in demand-pull, there is a shortage in supply, resulting in increased demand, and a rise in prices. The latter remains in place until demand can be matched and is a common occurrence among developing economies.
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Many chess players (myself included) are beginning to find the FIDE World Chess Championship between Norway’s Fabiano Caruana and American Fabiano Caruana boring – after six games, with every game ending in a draw, there is still no winner.
Defending champion Carlsen offered an explanation of “I was just way too casual” for his performance last Friday, where he was nearly defeated. However, observers said there was nothing nonchalant about the Norwegian’s dogged comeback to salvage a draw that could have cost him his number one ranking, which he has held for seven consecutive years.
The Scandinavian also claimed he did not believe in “fortresses” during his world title defense two years ago against Sergey Karjakin of Russia.
After taking a break, both players resumed Game 7 yesterday./WDJ
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