The inflation rate made the news last 2018, but judging from the comments section on news articles, it seems that a lot of people don’t really understand what it means or how it works. For example, some people were praising the unusually high inflation rates like it’s a good thing, and they don’t seem to understand how bad the situation was especially as they say other countries experience high inflation. Some people also mistakenly thought that the higher inflation was because there was an increase in the number of jobs and the income increase was devaluing the peso, when that’s actually false (the inflation was “cost-push” thanks to a then-recent tax law that also has an excise tax on fuel).
So what’s inflation anyway? Let’s discuss the basics, so keep reading to learn more![Read more…]