Peso Purchasing Power in Cebu

[punkrastaman]

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Hello Istoryans,

I know most of us here understand that the value of our 1 peso in Cebu decreases/reduces to unknown (?) value at present.

As a disclaimer, I am not an Economist nor a businessman who was acquainted with Inflation, purchasing power and the like. This is just for everyone's learning.

In y2011 data from Bangko Sentral ng Pilipinas, through Rappler, the purchasing power of peso from baseline y2000, P 1.00 shrank to P.57 (national figure)...this is due inflation rates are rising. Overall, what used to cost P 1.00 in y2000 is worth P 1.75 already in y2011. I am not familiar how much now.

Now, despite the recent roll-back of prices involving the major factor for inflation, price of oil products, prices for basic commodities stand still. As a result, it less likely improved the purchasing power of our P 1.00.


Businessman, Economist,

Our fellow Istoryans, including me, would be interested if you can share to us how much value/worth our P 1.00 (Jose Rizal coin).

P.S. Modz, please transfer where this post should reside.

Thank you.

[medwarc]

Bro, different financial experts have different calculations of inflation rate. There's 1 that I have read, that on average, on a 10 yr coverage, the computation of inflation here in Phils is 6%. Others computation is 4%, some 3% so medyo ma confuse na ta asa jud ang sakto.

[punkrastaman]

@medwarc, thanks sa info bro. agree nga maka confuse, in fact i also read an article with different perspective on inflation. both from phils but vary in line of business. a perspective of an importer and a businessman whose source and market is domestic.

[nodols3]

Ang inflation bro naa mana sa Central Bank ata nga website, mao mana permi ang bantayan nila.
I think mobalik ra gyud gihapon ni siya sa Law of Supply and Demand.

Naka read sad ko before nga " The Market will tend to Correct itself in the long run".
Although nakita nato karon nga kusog ang drop sa oil price. Wala kaayo ta nakita nga price drops sa mga commodity. Probably because wala pa mahurot ang supply para pag reflenish with low cost raw materials, brought about by the dropping oil prices.

One noticeable lang nako nga directly affected sa pag drop sa oil is ang LPG and of course and gasolina.
This way mas modako ang profit margin sa supplier, labi na if cheap na ang iyang raw materials.
But competition will also pull the prices down, kay since daghan naman nag supply ug na produce.
By Supply and Demand, daghan na pud ang supply. Mobarato na pud siya.

[punkrastaman]

@nodols3, agree on the probability that last supply of basic commodity are those acquired when oil prices still up that's why wala pa ni down ang prices. The question here also kung when mo increase of production (para mo excess ang supply) when consumers cannot dictate yet due to high cost of goods at present.

[koikox]

if you want to know the monthly Year on Year inflation rates,

Home | National Statistics Office

[CAPTAIN NAUTILUS]

dili man tingale mag saka kanaug ang purchasing power sa peso. Mag deflate hinuon tingale because of inflation.

[punkrastaman]

thanks for sharing @koikox

hi @CAPTAIN NAUTILUS, thanks for sharing
honestly, i don't know also but how about if prices decreases? would this also mean an increase of purchasing power?

[helpmikey]

Inflation is the increase of goods in a certain percent, Sa philippines its around 6 to 7 % per annum.
that means you loose around 7% of the purchasing power of the Fiat currency or paper money in your bank.
so if you hold ur money on the bank for a long time ... and bank give u 2% per annum. the actual value of your asset
is still decreasing. your worth increase 2% but the it loose 6% of its value then 4% deficit to beat inflation.
but there are different ways on how to preserve your value and beat inflation.
but don't loose hope there are different proven by history on how to preserve your net worth and even beat inflation and protect your asset and family from the decreasing value of fiat currency(paper money). ...

[H.Wolowitz]

as long mo increase ang sweldo okay ra

ang problema if dili? aw dha na magkagubot ang world hehe