INTRODUCTION

EFFECTS OF PRICE HIKE

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The
implementation of Tax Reform Acceleration and Inclusion is a big issue in the
country today. According to ABS-CBN News update, President Duterte on December
19, 2017, signed into law the first package of tax reform initiative and the
three point seven trillion pesos for infrastructure program. This act is all
about the first tranche measure, lowers personal income taxes while raising
duties on fuel, cars, coal and sugar-sweetened drinks. Due to this, there is a
rapid occurrence of price hike and many people are suffering from it. This
happening brought different reactions among Filipinos, specifically the
consumers. Though, this act brought burdens especially in providing basic
commodities and also to the laborers who have low income and never encountered
salary deduction from then. Partly, this is an advantage among workers that
would raise take-home pay and jumpstart infrastructure projects in the country,
which would help improve the lives of every Filipino.

Food
prices have been increased speedily during the stage 2005-2008 in the Eastern
Caribbean. Executive figures exposed that throughout the third sector of 2007,
the Consumer Price Index (CPI) for ? food greater than before 5.1 per cent, 4.2
percent and 4.0 percent in Grenada, St. Lucia and St. Vincent and the
Grenadines, correspondingly. All through the first quarter of 2008 food prices
jumped to 6.3 per cent and 8.7 per cent in Dominica and Barbados in that order.
This quick price rises follows extensive quickening of prices for bread and
cereal,  fruits and vegetables, meats,
dairy products, and sugars.

Global
food prices nearly doubled during 200408 and have remained relatively high
since then. Most recently, the FAO index of real global food prices rose from
151 points in June 2009 to 172 points in January 2010. The rise in global food
prices was highest for cereals, which remain relatively expensive: between 2005
and 2008 the international price of wheat more than doubled, and global rice
and maize prices tripled, and as of June 2009, wheat and maize prices remained
substantially higher than four years previously (by respectively 55 percent and
87 percent) while rice prices were about double. A number of simultaneous
events explain the unusually high food price inflation that took place during 2007.
In South Asia, food price inflation varied significantly among countries. In
2007, it ranged from relatively moderate in India (about7 percent), to high in
Nepal and Bangladesh (about 15 percent), to very high in Pakistan
(around20percent) and in Sri Lanka and Afghanistan (more than 30 percent).
Besides the inter country variations, there were significant variations among
commodities and, in many countries, among regions. The effect of food price
inflation on household welfare is analyzed at two levels in Chapter2. The
first, simpler level keeps quantities fixed and limited to the pure order
impact of the price change. Households are classified in to net buyers and net
seller sofa commodity where the latter gain and the former suffer welfare
losses as a result of a price increase. A second level of analysis takes
account of the consumption and production decisions that take place as a result
of the price change. We use nationally representative household survey data for
Bangladesh, Pakistan, and Nepal from before the food crisis to simulate the
impact of food price inflation on poverty headcount levels, taking account of
both first round and second round effects. The analysis does not allow for
general equilibrium effects. In Bangladesh, Pakistan, and Nepal, the net
marketing position of households leads to significant.
            The
price of fuel also enlarged significantly. The Consumer Price Index (CPI) for
the fourth quarter of 2007 discovered that the group ? fuel and light increased
by 7.4 per cent and 6.7 per cent in Dominica and Grenada correspondingly.
During the first quarter of 2008 Barbados and St. Lucia registered increases of
11.6 percent and 11.5 percent respectively. This hike was accredited to higher
fuel supplement and expenditure of gasoline.

In
Davao City, it was estimated that yellow corn grits increased by 5.37 percent
to P25.51pesos per kilo in the month of September in the year of 2017 from the
price of P24.21per kilo at the range at almost 12.95 percent from its P27.80
pesos per kilo price last year. In some places like Davao del Sur it was stated
only the price of white corn grits that has increased by P42.84 per kilo last
year. The percentage range is almost 18.82 percent. In Davao Oriental was also
noted that prices pegged now at the price of 
P28.72 per kilo. However, in Compostela Valley the white corn grits
slightly decreased by 4.77 percent from P26.43 kilo as of this year 2018. Thus,
this shows that in some areas in Davao City the price of corn grits has
increased and man y consumers are affected of this problem.

  

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