EDITORIALDecember spending seasonal, no cause for inflation alarmBy The Manila Timeshome/Opinion/Editorial/December spending seasonal, no cause for inflation alarmRELIEF from higher prices experienced in November may be short-lived, as indications are that inflation is set to rise again this month because of Christmas and year-end spending. Understanding the factors in play helps to put inflation, or the rate of increase in prices, in its proper context. The economy got a boost in that respect last month with the news that inflation had slowed significantly. Increased spending tends to drive inflation upward, which is why we are very likely to see higher inflation this month than in November. Inflation may be higher in December, but because it is demand-driven, it is also likely to return to normal levels when money inflows and spending moderate after the holidays.

Source: Manila Times December 19, 2018 18:11 UTC