Pearson eText Macroeconomics -- Access Card
Pearson eText Macroeconomics -- Access Card
7th Edition
ISBN: 9780136850014
Author: Hubbard, Glenn, O'Brien, Anthony
Publisher: PEARSON
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Chapter 9, Problem 9.6.5PA
To determine

Agree or disagree with the reporter’s definition of deflation.

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Analyze the article and explain the concept of inflation using the news article given below (incorporate the prices of food, oil, power, etc in the concept) The rate of increase in the prices of goods remained within the government’s target range despite the spike in oil prices and the impact of Typhoon Odette (Rai) on basic goods. The Philippine Statistics Authority (PSA) on Friday, February 4, reported that the country’s inflation rate inched down to 3% in January 2022, within the target range of 2% to 4%. This is lower than the rebased figure of 3.2% for December 2021. Inflation in Metro Manila eased to 1.3% in January 2022 from the 2.1% in December 2021. This was due to a deflation of 3% in food and non-alcoholic beverages. Meanwhile, inflation in areas outside the National Capital Region went up to 3.5% from 3.4%. The PSA noted that at the national level, food prices remained steady in January, despite effects seen in the aftermath of weather disturbances. It was also during…
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Pearson eText Macroeconomics -- Access Card

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