HOW INFLATION AFFECTS

THE ECONOMIC ACTIVITY

OF A COLLEGE STUDENT

JOHN PAUL B. ARROZA

DECEMBER 20, 2018

 There are so much factors or issues affecting the fluctuation of economic activities. One of

these factor is inflation which is the increase in supply of currency or credit relative to the

availability of goods and services, resulting in higher prices and a decrease in the purchasing power

of money. Furthermore, it is computed based on the Consumer Price Index (CPI) that measures

the average price of the standard basket of goods and services consumed by a household: foods,

electricity and water, gas, and clothing. The rate in which the CPI changes causes the inflation.

However, what causes it and how does it affect us college students?

Aside from measuring the increase in prices, inflation is an indicator of the country’s price

stability. Price stability is one of the reasons or causes affecting the inflation. The BSP is mandated

to promote price stability that will be conducive to economy growth. According to BSP, there is

price stability when the general price level of goods and services in the country moves at a low

and predictable rate thus preserving the value of your money. Conversely, when prices rise

substantially and unpredictably your money buys fewer goods and services. The second reason

affecting inflation is the economic growth. Fast growth of the economy can have an impact on the

inflation because consumers demand more than what can be supplied. The inflation also has a

direct effect on the country’s gross domestic product (GDP) growth rate. One of the indicators of

economic growth. The DGP measure the country’s domestic levels of production. As the Director-

General of Neda said, as inflation rates soar, the Philippines’ GDP growth rate naturally drops. In

addition, it is normal to developing countries, like the Philippines, to experience inflation. Because

the demand rapidly increase than the supply and it will take time for supply to adjust. Moreover,

the direct effect of inflation is it becomes the deflator of GDP growth rate which is, if inflation rate

increase, the real growth rate of the economy decrease.

 When there is inflation, there are people to experience the rising prices of products and

services, one example to that is the students. But how inflation affected the students? Every

students will definitely feel the impact of an increase in inflation especially those students whose

parents are not bailing them to school. In other words, the working students. It will affect to

student's life about their living, their study and their spirit. Student's living become more difficult

because of rapidly rising price. With small amount of support money from their parents, students

hard to live well. The cost of living is rising and students’ quality of life is lower. Meal is a change

which we can see clearest. How student can buy meat or fish with high price? Besides, rent-house

electricity, water fee are all increase. To have a good flat in this time is rather difficult for students.

Therefore, they have to live in small, old, bad condition flats, sometimes they have a lot of

uninvited guests like insects, mouse. Moreover, monthly student must pay for electricity, water

with high prices, depending on the price stipulated by the landlord. Eating not enough nutrients,

living in bad condition flats also caused students health. Learning requires pretty much work of

the mind so if lack of nutrients, students hardly to focus on. The higher inflation is, the lower

standard living students have.

Inflation also greatly affect to students studying. Because of rising of the cost of living,

many family cannot support for their children well. The school fees, books, study tools are all

increase. How students can absolutely focus on study if they eat not enough nutrition, lack of

money to buy books, and study tools. Doing part time job is the best solution for a lot of students.

They can both learn and do part time job as a tutor, a waiter or a baby sitter, and may others.

However, spending a lot of time to earn money that affects a lots to their health as well as their

study. After hard study period, they continue to do part time job and come back their rent house in

tired. And they may be fail in the final exam.

 Inflation not only affect to students living and study, but it also affect to their spirit. With

a lot of students to support for their study is not easy. Parents have to worry and work rather hard.

Especially, in the context of high inflation with the rapidly rising of everything, they have more

difficult. A lot of students are broken heart to receive value money from hard hands of their parents.

How can they do not love as well as worry about their parents. Some students even think that they

are a burden for their parents. They do their best to study, others do part time job; however, the

others cannot focus on study and they drop school. May be there are hardly to happen some cases

like that if the inflation not happen which the cost of living is not too high. And students not to

worry too much and can focus on their study.

Moreover, based on my experience, lets say last year, my fare is ten pesos and I have one

hundred pesos allowance. One hundred pesos minus forty pesos (home to school and vice versa,

am and pm) is sixty pesos. And in that sixty pesos deduct foods and other miscellaneous expenses

like photocopies. I can save atleast twenty pesos per day. And in that twenty pesos, a lot of things

I can buy or I can do to that twenty pesos.

BUT AT THIS PRESENT TIME, HANGGANG SAAN AABOT ANG BENTE PESOS MO?
“Thanks to those coward politicians who prefer to tax you through inflation by printing money instead of raising tax”
References:

https://www.gmanetwork.com/news/money/economy/666756/what-is-inflation-what-causes-it-

how-does-it-affect-us/story/

http://www.dailynebraskan.com/news/effect-of-economy-inflation-varies-is-still-felt-by-

college/article_f7dce69e-7575-11e6-bed7-a3f9577efe8e.html

https://www.quora.com/What-is-the-impact-of-inflation-on-student-life