In 1960-1969, the inflation rate per annum was always single-digit, and half the time it was below 5 percent. I remember Gabriel “Gabby” Singson (Bangko Sentral governor, 1993-1999) saying, not to worry, as long as inflation is single-digit. Even if inflation is only 5 percent, two years without a salary adjustment is a painful 10-percent drop in real income. The standard coping procedure for people in private businesses, large, small, or micro, is to adjust their selling prices to inflation. The rich are well aware that real interest equals money interest minus the rate of inflation.

Source: Forbes January 13, 2024 15:37 UTC