|Danny Arao online|
Release No. 99-11
Government trumpets the 5.8% inflation rate as of June 1999 as the lowest in 22 months.
Official statistics show that the inflation rate has been brought down to a single-digit level since the early part of 1999. From a high of 11.5% in January 1999, the inflation rate has been lopped off by almost six percentage points. (See Table)
A supposedly lower inflation rate, however, does not mean better times ahead for Filipinos, particularly the cash-strapped.
IBON computations show that as of June 1999, one peso is only worth 69 centavos compared to prices five years ago. This simply means that due to increase in prices, the goods and services a person can buy for 69 centavos in 1994 are already equivalent to one peso at present.
The recent data on purchasing power of the peso implies that the real value of ones money has been eroded by 31% due to increased prices of goods and services.
When President Estrada assumed office towards the end of June 1998, the purchasing power of the peso has been pegged at 73 centavos. Since then, the real value of one peso has been slowly lopped off, making life miserable for the poor.
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