How does inflation rate affects the consumers?

 The inflation rate of the Philippines almost doubled from June 2021 from 3.7 to 6.1 in its current reading July 2022 according to PSA. 

Inflation is the increase of prices & goods in a given period of time.  It is typically the measure of such as price increase.   How does it affect the consumers?  

It can also be defined as the rate of purchasing power of consumers according to investopedia.  

Image From Investopedia

So if inflation is at an all-time high, prices are also going up.  That is why we can see many businesses are ramping up the prices to survive in the growing inflation rate in many parts of the country or in the world.  

In order for sustain this rise of inflation, the monetary authority (like the central bank) takes the necessary steps to manage the money supply and credit to keep inflation within permissible limits and keep the economy running smoothly.