What does double-digit inflation mean for us ordinary mortals?
When prices rise “between 10 percent and 99 percent,” it can mean anything from less food for the same budget and hunger rates spiking, to higher utility bills and businesses folding.
Filipinos have been urged to evaluate the way they live and pare their expenses down to the essentials as the Middle East war continues to sow uncertainty across the world. For while the Marcos administration had been getting flak for the seeming lack of urgency in its response to the conflict, Filipinos have been called upon to prepare for the worst.
The last time the Philippines recorded double-digit inflation was in September 2008 (10.1 percent, down from a peak of 10.5 percent in August of that year) during the Arroyo administration. At the time, rice prices surged globally, with international prices tripling at one point. At the same time, fuel price increases added to the burden, making life more difficult for the average Juan.
As the peso weakened, transport fares increased, water and electricity bills rose, goods became more expensive, and investments fell. We are seeing some of this again, and some believe it is better to err on the side of caution to shield the public from the economic shocks brought about by global disruption.
There are those who think this kind of talk is fear-mongering, pointing out that inflation rates have not hit double digits for a long time and that the conflict in the Middle East may soon be resolved.
Still, does anyone remember that dark time in history when inflation “reached a mind-boggling 50.3 percent under the Marcos Sr. administration”? That happened in 1984, and perhaps that warning sign was not quite visible during the ’80s.
Where do we position ourselves here? What kind of preparations are we supposed to make if we are not as savvy with solutions as the average economist? How manageable, indeed, are these movements in the economic landscape?
The answer lies squarely in the hands of our government. Because even as inflation is affected by international factors — such as a conflict that limits the world’s oil supply —domestic actions may be taken to cushion the blow.
So now that President Ferdinand Marcos Jr. has signed into law a bill granting him the power to suspend or reduce (for up to three months) the excise tax on petroleum products should the price of crude oil exceed $80 per barrel for a month, what now?
If inflation does get out of hand, how will the average Pinoy survive on his shrinking paycheck and skyrocketing prices?