CLEMELLE L. MONTALLANA,DM, CESE
ASSOCIATE PROFESSOR III DIRECTOR
PHYSICAL PLANT, FACILITIES
The present looks bleak so as the future . The Inflation may have breach 8 percent and as we observe the high cost of living is taking its tool in the vast majority of the people. World Data Info website explains it this way :
The prices of consumer goods are determined and evaluated annually in almost all countries. If prices are higher than in the previous year, this is known as inflation. If they are lower, it is deflation. This calculated inflation rate is an essential component of monetary stability.
In 2021, the global inflation rate was 3.4 percent. In the European Union, it was 2.6 percent. For the United States, a year-over-year price increase of 4.7 percent was determined. Significantly higher values are expected worldwide for 2022.
Alarmingly we have this data : The inflation rate for consumer prices in the Philippines moved over the past 61 years between 0.7% and 50.3%. For 2021, an inflation rate of 3.9% was calculated.
During the observation period from 1960 to 2021, the average inflation rate was 8.5% per year. Overall, the price increase was 12,625.67%. An item that cost 100 pesos in 1960 costs 12,725.67 pesos at the beginning of 2022. (https://www.worlddata.info/asia/philippines/inflation-rates.php).
The Philippine Statistics Authority released in November 4.2022 this figures ;
Inflation in the Philippines for the bottom-30 percent income households continued its uptrend movement as it further increased to 7.3 percent in October 2022, from 6.7 percent in September 2022. This brings the year-to-date inflation for this particular income group of consumers at the national level to 4.8 percent. In October 2021, inflation rate was recorded at 4.8 percent. (Tables A and B, and Figure 1)
The higher annual increment in the index of food and non-alcoholic beverages at 7.5 percent in October 2022, from 6.5 percent in the previous month, primarily contributed to the higher inflation in the country for the bottom 30 percent income households. Also contributed to the acceleration were restaurants and miscellaneous goods and services with 5.5 percent inflation; and furnishings, household equipment and routine household maintenance with 5.9 percent inflation.
In short , we are in Recession . In ordinary Juan’s term , Bad Times are here . It’s with a sad note that some people are denying this reality . Octa Research had released a survey result showing 36 percent of our people are not satisfied with the way government are handling the problem on Inflation .
Thus , it is with a great wonder why we should as a country use our surplus to invest when we don’t have much fiscal space and resilience ? Maharlika Fund are Sovereign Wealth Fund (SWFs) are essentially government-backed entities which invest foreign currency reserves, typically implemented by nations with sufficient fiscal space and resilience. (Yuga Tech .com)
There are lots of questions that baffles ordinary Filipinos like this writer . Yuga Tech disclosed the source of this fund namely from the following :
The bill specified the following financing sources to constitute the initial investment of PHP 250 billion:
§ Government Service Insurance System (GSIS): PHP 125 billion
§ Social Security System (SSS): PHP 50 billion
§ Land Bank of the Philippines (LBP): PHP 50 billion
§ Development Bank of the Philippines (DBP): PHP 25 billion
The simple question lingers , what will happen to the Pension Funds at GSIS and SSS where hard up Filipinos contribute monthly ? What will become of the main Government Banks Landbank and Development Bank of the Philippines when their funds will be the source of this investments , knowing the volatile reality of the world market fueled by Geopolitical Wars unfolding and would be unfolding ?
For us in the lower strata of the population where our names wont command millions of followers asked are we just pawn to the garbo and pride of our leaders ?
As a young boy my Grandmother introduced me to the Hans Christian Andersen story The Emperor’s New Clothes . The central theme of Hans Christian Andersen’s story of the Emperor’s new clothes is that illusion depends at least in part on self-deception on the part of those being deceived. The Emperor and his courtiers pretend he is wearing clothes because they do not wish to appear foolish; in the end they look more so.