CHAPTER I

INTRODUCTION

A. Background of the Study

As the country faces inflation in increasing a demand of
consumers and increasing prices of goods over a long period of
time causing a purchasing power of the amount of goods and
services you can buy with a single unit of currency to decrease,
in short inflation means that your money might not be able to buy
as much as it could in the past. Inflation refers to the general
increase in prices of goods and services overtime leading to a
decrease in purchasing power. It is a crucial economic indicator
as it affects consumer behavior monetary policy and overall
economic stability.

Moderate inflation is often seen as a sign of a growing

economy. It encourages spending and investment, as a consumer
anticipate higher prices in the future conversely high inflation
can lead to economic instability reducing consumer confidence and
spending. This is a broad measure as the overall increase in
prices or such increase on living in a country. This research is
intended to present a uniform understanding of the status of
selected presidents on how to approach planning and operational
activities. This research was studied through interview in
barangay central.

The purpose of the study is to determine the inflation

impact
among selected residents on their economic status that affect
them, however excessive inflation can lead to uncertainty reduced
savings and decreased investment potentially stalling economic
growth. This background sets the stage to a detailed examinations
of inflations mechanism, effects, and strategies foe management
in both theoretical and practical context.

Inflations dynamics are globally influenced by factors like

exchange rate, fiscal policies, and international trade.
Comparative studies on inflation help in understanding its
broader economic implications. this research inflation is
essential for creating a deeper understanding of its dynamics and
impacts shaping economic policies and improving effectiveness of
economic management in selected residents. The study may aim to
analyze causes and effects of inflation, evaluate its impact on
different sectors and propose policy recommendations for
effective inflation control.

B. Statement of the Problem

This study seeks to determine what is the cause and effect of

inflation rate among the selected residents in barangay central,
especially it seeks to answer:

1. What is the economic status of selected residents of

barangay central?
2. What is the impact of inflation among the selected
residents?
3. What are the threats of inflation among the residents?
4. What are the strategies to be employed to address the
possible threats of inflation?
5. What possible output can be proposed in this study?
 Assumption of the Study

1. The economic status of selected residents in barangay

central is low-income household.
2. The impact of inflation among selected residents was their
money will not be able to buy as much as it could be in the
past due to high prices of foods.
3. The threats of inflation among the selected residents that it
might assume that the economic environment remains relatively
stable.
4. The strategies to be employed in this study is quantitative
research.
5. The possible output that can be proposed could be planning a
session program/meeting among the selected residents of barangay
central.

C. Scope and Delimitation

This Includes the students, parents and teachers

who affected by inflations in barangay central.
This Excludes non-economic Factors that Environmental factors
influencing Inflation and Historical Analysis does not provide a
Detailed Historical account of Inflation.

D. Significance of the Study

This study is significant to:

Students – This study helps to understand how Inflation affects

the Living among Included Students of Barangay Central.
Parents – this study provides valuable insights and information
that can guide them in understanding inflations.

Teachers – This Study provides Crucial insights and Practical

strategies to Enhance their Teaching practices and address the
Needs of their Teaching practices and Address the needs of their
Students effectively By focusing on Inflations.

Future researchers- future researchers can use this as a starting

point to explore related topics or to track changes overtime.

E. Definition of terms

 Inflation

Conceptual Definition - is a sustained increase in the general

price level of good and services in an economy over time. It is
measured as an annual percentage increase in the Consumer Price
Index (CPI), which tracks the prices of a basket of goods and
services.

Operational Definition - the rate at which prices increase over

time. It's a broad measure that can be calculated fora country's
overall prices, or for specific goods or services

 Residents

Conceptual Definition - Someone who lives in a particular place,

such as city, town, or country, for a significant period of time.
Residents are typically considered to be permanent or semi-permanent
inhabitants of a location, as opposed to visitors or temporary
occupants.
Operational Definition - someone who lives in a place for a sustained
period of time, or who was born there

CHAPTER II
REVIEW OF RELATED LITERATURE AND SUDIES

Foreign Literature

David Jacobs, Dilhan Perera and Thomas Williams* This article looks at
increases in the cost of living for Australian households over the
past decade. Inflation as measured by changes in the consumer price
index (CPI) overstates ‘true’ increases in the cost of living due to a
number of inherent conceptual differences and measurement issues. Even
so, other measures of the cost of living have increased by a similar
amount to the CPI over the past decade. Measured inflation has been
higher for some households and socio-economic groups than for others,
though the differences have generally not been large and have tended
to even out over time. Although cost-of-living inflation has been
moderate across most households, there are a number of reasons why
some households might have perceived inflation to be higher than it
actually was. A significant concern for many households is the expense
they incur to buy the goods and services that are necessary to
maintain a certain standard of living – that is, their ‘cost of
living’. The prices of many of these items tend to rise over time,
which places upward pressure on the cost of living. The CPI, which
measures inflation in prices, is often used to assess changes in the
cost of living. Over the past decade, the CPI has increased by around
30 per cent, averaging around 2¾ per cent per year. This pace of
increase has been consistent with the Reserve Bank’s target of keeping
CPI inflation between 2 and 3 per cent per year, on average, over the
business cycle. This rate of inflation has also been low compared with
that in the two decades prior to the Reserve Bank’s adoption of an
inflation target (in 1993), when CPI inflation averaged nearly 10 per
cent a year living costs for the roughly one-third of households with
a mortgage. In contrast, for households that rent or own their home
outright, mortgage rates do not directly affect their cost of living.
As a result, when interest rates have risen, households with mortgages
have tended to face higher cost-of-living inflation than other
households (Graph 4). And when interest rates have fallen, such as
over the past two years, mortgagor households have experienced lower
inflation than other households, with the cost of living even falling
for some. Differences in cost-of-living inflation across households
that have different sources of primary income can also be largely
explained by changes in mortgage rates, at least in the short-term.
Households for which employment is the main source of income are more
likely to have a mortgage. So, according to the ABS’ ALCIs, changes in
mortgage rates have had a relatively large effect on cost-of-living
inflation for these employee households (Graph 5). In contrast, self-
funded retirees, pensioners and other government transfer recipients
are all less likely to have mortgages, so their cost of living is less
affected by interest rates.

Local literature

Pamela F. Resurreccion1 1Associate Professor V, Department of

Marketing, MSU – Iligan Institute of Technology of Iligan City,
Philippines ABSTRACT Unemployment is among the major problems not only
in less developed and developing countries but in developed countries
as well. It spells out the extent of poverty a household will have to
sustain. Strongly influenced by the premises of the Okun’s Law and
Phillips Curve, this study sought to determine the link between
unemployment and inflation and economic growth. An additional
explanatory variable, age dependency ratio, was introduced to
investigate this facet of unemployment which is based on the premise
that a high age dependency ratio would result to lower unemployment.
Unit root tests were employed to the data series prior to testing the
hypothesized relationships which employed ordinary least squares (OLS)
regression technique. Tests for heteroskedasticity and collinearity
were done using White’s test and VIF, respectively. It was found that
unemployment is negatively related to inflation and economic growth,
confirming Okun’s Law and Philips Curve in the Philippines for the
period covering 1980 to 2009. Moreover, age dependency ratio was found
to be positively related with unemployment albeit, the relationship is
not significant. The coefficient of determination obtained for the
model was 72.7% hence overall, the regression line relatively
describes the data well .The inverse relationship between the growth
rate of an economy and unemployment is a widely accepted theory in
economics. This has been postulated and articulated and is well known
as Okun‟s Law, particularly the different version of the law. In the
difference version of Okun‟s Law, the changes in the unemployment rate
from one quarter to the next moved with quarterly growth in real
output and took the form: Change in the unemployment rate = a + b∗
s(Real output growth) (1) This captures how output growth varies
simultaneously with changes in the unemployment rate. The parameter b
is often called “Okun‟s coefficient”(Knotek, 2007). As Knotek (2007)
further explained, “one would expect the Okun‟s coefficient to be
negative, so that rapid output growth is associated with a falling
unemployment rate, and slow or negative output growth is associated
with a rising unemployment rate. The ratio “–a/b” gives the rate of
output growth consistent with a stable unemployment rate, or how
quickly the economy would typically need to grow to maintain a given
level of unemployment. Many studies have been conducted to investigate
the prevalence and applicability of Okun‟s Law. When the movement of
unemployment rate and the long and short

Foreign literature

MB Shrestha, SK Chaudhary - NRB Economic Review, 2012 - nepjol.info

This paper examines the impact of food price hike on poverty in Nepal
employing crosssectional sample household consumption data of Nepal
Living Standard Survey III. The findings of the study suggest that a
10 percent rise in food prices is likely to increase overall poverty
in Nepal by 4 percentage points. It implies that one percent rise in
food inflation will push 100 thousand additional people into overall
poverty and 180 thousand additional people into food poverty. The
paper also analyses the impact at the regional level and suggests some
policy options to contain the food inflation and to mitigate the
impact of food price hike on the poor section of the population.

Local literature

We simulate the impact of food inflation between June 2006 and June
2008 on poverty across different areas and between agricultural and
non-agricultural households. We explicitly treat the spatial
heterogeneity in food inflation and the differences in consumption and
production patterns across households by merging household expenditure
survey and price datasets at the provincial level or lower. Although
some of the poor agricultural households may have escaped poverty, the
poorest of the poor, whether they are in an agricultural household or
not, are severely and adversely affected by the food inflation. n 2007,
the Philippines witnessed the highest annual growth in its GDP per
capita in 30 years, according to the World Development Indicators.
With the annual per capita GDP growth of 4.8%, the Philippines
simultaneously outperformed Malaysia and Thailand for the first time
since 1998. While the Philippines were growing at a rate significantly
lower than its neighbors in the early 1990s, it maintained healthy
growth in the region in more recent years. Yet, the Philippines appear
to have madeIn this study, we adopt the income-based definition of
poverty for 2006 as the point of reference because official poverty
statistics published by the National Statistical Coordination Board
(NSCB) are based on income and have already been widely used. Hence,
providing poverty figures that are comparable to official poverty
statistics facilitates the comparison of this study with numerous
others. As discussed in Poverty measurement and simulation method, the
net consumption ratio is a useful measure of vulnerability to food
inflation. To highlight the heterogeneity in the overall vulnerability
of households, we conduct a kernel density estimation of the net
consumption ratio of food, r = ∑iϵF ri, for urban and rural areas and by
the type of the household. Because the consumption and production
categories are different, we calculate γ as the difference between the
total food consumption n this paper, we have simulated the impact of
global food inflation on poverty in the Philippines. We have shown
that the overall impact has been sizable and that the magnitude of the
impact varies across locations and income levels.
 CHAPTER III
METHODS AND PROCEDURES

Research Design/Method

This study can utilize a quantitative approach, focusing on

timeseries data to track the relationship between inflation and
various unemployment rates, wages, and consumers spending overtime.
The independent variable would be the consumer price index (CPI),
while the dependent variables could include economic growth (GDP),
unemployment wages levels and consumptions patterns. Control variable
might include fascal policies, interest rates and global sourced from
government agencies international organizations (such as the IMF, and
world Bank), and financial basis, statistical techniques such as
regressions analysis could then be applied to examine the correlation
between inflation and these economic factors helping to test
hypothesis like whether high inflation negatively affects economic
growth or increases unemployment. This design allows for a
comprehensive analysis of inflation impact across various sectors of
the economy.

Respondents

the respondents of this study are the selected residents of barangay

central. The respondents were low-income household since they are the
ones who are affected by the factors mentioned.

Table A. the respondents:

Respondents frequency Percent

Low-income household 15 55.5%
Lower income household 12 44.5%
Total: 27 100%

Research Instrument

The research instrument used in this study is a descriptive

research method. This approach is appropriate as the study aims to
illustrate the current status and conditions of selected residents
within the given context. The data collection process will involve
surveys, interviews, and observations to gather information about the
characteristics, challenges. The "research instrument" aspect of the
study refers to the tools used, such as questionnaires and structured
interview guides, to ensure consistency and accuracy in gathering
relevant data. By using these methods, the study seeks to provide a
clear and systematic description of the experiences and conditions of
affected residents of inflation. The gathered information will serve
as a basis for analysis and conclusions regarding the research
objectives.

Sources of the Data

This study focuses on various sources of the data which can be

broadly categorized into primary, secondary, and tertiary sources.
Primary sources of data include trust hand data collection such as
surveys, interviews, and experiments.

Data gathering Procedure

Prior to carrying out the research, the initial step was to

identify
appropriate respondents who were eligible for the study. The
researchers took caution to select participants so that they were
appropriate for the research purposes. after identifying the
respondents, the researcher wrote a formal letter to a principal,
seeking permission to carry out the study. The letter defined the
researcher aim, method of data collection and anticipated results.
Upon receiving approval, the researchers embarked on the process of
data collection, surveys, interviews, and observation were conducted
to obtain vital information from the respondents. Selected
participants were walked through the survey questionnaire in order to
maintain clarity and preciseness in their response during the process.
The data that was collected duly classified and interpreted by proper
research procedures to conclude effectively.

Statistical treatment of Data

To ensure that the researchers obtain reliable and unbiased results in

relation to the effects of inflation on small businesses, the
following statistical techniques will be used:

Frequency Count: This method will be used to analyze numerical data

related to inflation's impact on selected residents. Data points such
as price changes in raw materials, operational costs, and fluctuations
in product pricing will be categorized and counted under a structured
framework. By applying this statistical approach, the study will
summarize responses from selected residents to determine common trends
in price adjustments, cost-cutting measures, and revenue fluctuations
due to inflation.

Ranking Method: Data points such as the most affected expenses (e.g.,
rent, wages, raw materials) will be ranked from highest to lowest
impact. This will help identify which cost factors are most vulnerable
to inflationary pressures and how businesses prioritize their
financial adjustments.
By using these statistical tools, the study aims to present a clear
analysis of how inflation influences and provide insights into
strategies used by entrepreneurs to adapt to economic changes.

CHAPTER IV
Presentation, Analysis and Interpretation of Data

This chapter presents the presentation, analysis and interpretation of

Data.

Table 1. what is the economic status of the selected residents?

Indicators frequency rank

High income household 2 3
Upper middle-income household 2 4
Moderate income household 4 2
Low-income household 7 1
No economic status 0 5

 The table shows the most answers of selected residents ranked by

frequency. Low-income household are the most answer, followed by
moderate-income household, high-income household and upper
middle-income household are the same.

Table 2. what is the impact of inflation among selected residents?

Weighted mean Result

 4-20-5 Strongly agree 5
3-40-4-14 Slightly agree 4
2-60-3-39 Agree 3
1-8-2-64 Disagree 2
1-1-79 Strongly disagree 1

 The table shows the impact of inflation using the weighted mean.

Table 3. What are the threats of inflation?

Indicator frequency Rank

Decrease the value of the money 4 3
Introduce the value of hyper inflation 8 2
Can reduce the future real value of money 2 4.5
Can raise the cost of living 10 1
Lack of financial can affect students 2 4.5

I. Table 3 shows the threats of inflation

II. It can be seen in the table 3 that (can raise the cost of living)
has a frequency of 10,rank 1; introduce the risk of hyper
inflation has a frequency of 8,rank 2; decrease the value of the
money has a frequency of 4, rank 3; can reduce the future real
world value of money and lack of financial can affect students
has a frequency of 2,rank 4.5.

Table 4. what are the strategies to be employed to address the

possible threats of inflation.

indicator frequency Rank

Create budget 1 4
Organize financial 2 3.5
Focus only on the needs 8 1
Find sources of income 2 3.5
 Establish financial assistance 3 2

I. Table 1 shows the possible threats of inflation.

II. It shows that the most answers of respondents is focus only on
needs next is establish financial assistance and both of 2
answers are the same and lastly is create a budget.

CHAPTER V
Summary of Findings, Conclusions, and Recommendations

SUMMARY
This chapter presents the analysis and interpretation of the data
gathered in the study on the impact of inflation among selected
residents in Barangay Central. It provides insights into the key
findings, compares them with existing literature, and highlights the
implications of these results. The primary objective is to understand
how inflation affects the daily lives of the residents in terms of
purchasing power, cost of living, and overall well-being.

FINDINGS
Summary of Key Findings: From the survey and interviews conducted, it
was evident that inflation has a profound effect on the residents of
Barangay Central. The following are the main findings:

 Increased Cost of Basic Goods and Services: The residents

reported a significant rise in the prices of essential goods such
as food, transportation, and utilities. Many indicated that the
prices of basic items like rice, vegetables, and meat have
increased drastically in the past year. This has caused financial
strain for many households.

 Decreased Purchasing Power: Due to inflation, the purchasing

power of the residents has decreased. A significant number of
respondents mentioned that their monthly income no longer covers
 their basic needs, forcing them to make difficult choices such as
reducing their food consumption or skipping medical expenses.

 Shift in Consumption Patterns: To cope with the rising prices,

many residents have adjusted their consumption habits. This
includes opting for cheaper, lower-quality products, and reducing
consumption of non-essential items such as entertainment or
leisure activities. A few residents also reported buying in bulk
to take advantage of discounted prices.

 Impact on Savings and Investments: The study found that inflation

has also negatively affected the residents’ ability to save
money. With the rising cost of goods, many households reported
that they are no longer able to put aside money for future needs
or emergencies. Some families have even had to dip into their
savings to survive.

 Strain on Small Businesses: Several small business owners in

Barangay Central mentioned that they are struggling to cope with
inflation. Increased costs of raw materials and transportation
have reduced their profit margins. Many small-scale entrepreneurs
are being forced to increase their prices, which in turn has
affected their customer base.

CONCLUSION:

Interpretation of Findings The findings of this study are consistent

with several studies on inflation's impact on local communities. The
increased cost of living and decreased purchasing power are typical
consequences of inflation. For the residents of Barangay Central,
inflation has led to a higher degree of financial stress, particularly
for low-income households. This financial strain has forced them to
change their lifestyles and adjust their expectations regarding what
they can afford.
The shift in consumption patterns also suggests that residents are
employing coping strategies in response to the economic challenges
posed by inflation. While these strategies may provide short-term
relief, they do not offer long-term solutions to the financial
difficulties caused by inflation. Moreover, the difficulties faced by
small business owners reflect a broader issue within the local
economy. The impact of inflation on small businesses is a crucial
factor, as these businesses form the backbone of many communities. As
their operating costs rise, their ability to maintain profitability
and provide affordable goods and services is severely compromised,
which can lead to further economic instability.

RECOMMENDATIONS:

Comparison with Literature Existing literature on the effects of

inflation on communities supports the findings of this study.
According to a report by the National Economic and Development
Authority (NEDA), inflation increases the cost of living, which
disproportionately affects low-income families who spend a larger
share of their income on basic necessities. Similarly, a study by the
Bangko Sentral ng Pilipinas (BSP) indicated that inflation leads to
reduced purchasing power and alters consumption patterns, as
households prioritize essential goods over non-essential items.
In terms of small businesses, previous research shows that inflation
puts pressure on entrepreneurs to adjust their pricing strategies. A
study by the Philippine Institute for Development Studies (PIDS)
suggests that small businesses in inflationary environments often face
challenges in balancing the need to maintain competitive prices while
covering rising costs. Implications of Findings The findings of this
study have significant implications for policymakers and local
authorities in Barangay Central. It is essential for government
interventions to address the economic challenges posed by inflation.
One key recommendation is the implementation of social safety nets or
financial assistance programs for low-income households to cushion the
effects of rising prices.
 Republic of the Philippines
Department of Education
Casiguran Technical Vocational School
Adovis, Casiguran, Sorsogon

Research paper in 3I’s

Inquires, Investigation, and Immersion

THE IMPACT OF INFLATION AMONG SELECTED RESIDENTS OF BARANGAY CENTRAL

Prepared by:
Hibo, Mark Joseph L
Desaliza, Kim Carlo O.
Buenaobra, Lex Bon G.
Habitan, Mark Eric H.

Presented to:
Dr. Joseph F. Guab
Second Semester
2025
Acknowledgement

We, the undersigned, would like to express our heartfelt gratitude to

all those who have supported and contributed to the successful
completion of this research project titled " THE IMPACT OF INFLATION
AMONG SELECTED RESIDENTS OF BARANGAY CENTRAL."
First and foremost, we extend our sincere thanks to our research
advisor, Mr. Joseph F. Guab, for their invaluable guidance, insightful
feedback, and constant encouragement throughout the research process.
Their expertise and patience have been instrumental in the development
and refinement of this study.
We also wish to acknowledge the teachers for providing the necessary
resources and funding that enabled the successful execution of this
research. The support provided by the department has significantly
contributed to the quality and depth of our work.
Our appreciation extends to [names of any individuals, mentors, or
other researchers who helped], for their unwavering support,
constructive suggestions, and sharing of their expertise. Their
collaboration has been essential in bringing this research to
fruition.
Furthermore, we would like to thank our teacher for their
assistance,as well as Hibo, Mark Joseph L, Desaliza, Kim Carlo O.,
Buenaobra, Lex Bon G., And Habitan, Mark Eric H. for their
contributions in data collection, analysis, and other critical aspects
of the study.
Lastly, we express our gratitude to our families and friends for their
understanding, patience, and emotional support during the course of
this research.
This research would not have been possible without the collective
efforts of these remarkable individuals and organizations. We
sincerely appreciate everyone who has been part of this journey.

Table of Contents
Title page_________________________________________________________i
Acknowledgment___________________________________________________ii
Abstract__________________________________________________________iii
Table of Contents___________________________________________________vi

Chapter I:
The Problem And It's
Setting:___________________________________________________________1-5
Introduction________________________________________________________1-
2
Background of the
Study______________________________________________2-3
Statement of the
problem______________________________________________3
Assumption of the
study_______________________________________________4
Scope and
Delimitation________________________________________________4
Significance of the
study_______________________________________________4
Definition of
terms____________________________________________________5

Chapter II:
Review of Related Literature and Study._______________________________
6-11
Foreign Literature: ________________________________________________6-
7
Local Literature:___________________________________________________6-
7
Foreign Study_____________________________________________________8-10
Local Study_______________________________________________________8-10
Conceptual Framework_____________________________________________11
Conceptual Paradigm

Chapter III:
Methods and
Procedures_______________________________________________1-3
Research Design
Method_____________________________________________1
Respondents_______________________________________________________
_1-2
Research
Instrument_________________________________________________2
Sources of
Data_____________________________________________________2
Data Gathering
Procedure____________________________________________2-3
Statistical Treatment of
Data__________________________________________3

Chapter IV:

Presentation, Analysis and Interpretation of

Data__________________________1-4
 (Tables)________________________________________________________
__1-4
(output)________________________________________________________
__1-4

Chapter V:
Summary of Findings, Conclusion and Recommendations._______________1-3
Summary______________________________________________________1
Findings_______________________________________________________1-2
Conclusion_____________________________________________________2-3
Recommendations_______________________________________________3

References_________________________________________________________v-
vi
Appendices________________________________________________________vii-
viii
Appendix
B.____________________________________________________ix-x
Curriculum Vitae___________________________________________________xi-
xiii
Documentation_____________________________________________________xiv