Beware, Manila Bulletin reports august inflation rises by 3.8 %. According to Manila Bulletin:
MANILA, Philippines — Higher prices of essential commodities pushed up the country’s inflation rate to 3.8 percent in August from 3.2 percent in July.
The National Statistics Office (NSO) reported higher annual increases in five commodity groups – food and non-alcoholic beverages; clothing and footwear; housing, water, electricity, gas and other fuels; furnishing, household equipment and routine maintenance of the house; and transport. Inflation a year ago was 4.6 percent.
Meaning, if inflation rises, demand will go down and there could be increase in unemployment rate as well. Small businesses must prepare on this. It would be really harmful to you and to our economy. What are the things that we must think of?
High inflation spoils consumer behavior. Because of the fear in the prices, people tend to panic buy. This can destabilize markets creating unnecessary shortages. Their purchasing power fails as well, especially people with fix income.
Prices increase, but our salary remains. Meaning, we budget what we have and we tend to minimize our wants and sometimes our needs. We make sure that we buy only those necessary and adequate. Practicality wise, but these are the difficult moment of being an entrepreneur. Be ready for this.
With high inflation, you (entrepreneur/business owner) must be ready as well for the demand of your people for higher wages. Since, prices increases they will be worried about buying their needs.
In addition, it will be difficult for you to anticipate future and accurately calculate prices and return on investments. This might undermine business confidence. I tell you don’t be, this phenomenon really happens and we must face it with courage and tranquility. With this, we could strategize cleverly.
Again, as Edu Lopez reported:
The BSP also said on Wednesday that its monetary policy is appropriate despite inflation accelerating in August.
“As we had expected inflation would creep higher on higher commodity prices, including prices for household equipment and repairs and transport. This uptick would, however, not cause any breaches in the full-year average target ranges over the policy horizon,” Bangko Sentral ng Pilipinas Gov. Amando Tetangco said in a text message to reporters.
What can you say about it?