Inflation results to redistributive effects, meaning, the effects of inflation are redistributed to ___________ individuals, and as such, there will be ________ and ________

Fixed Asset Owners. Land owners gain during inflation as the value of land and other fixed assets ___________.

Even though there is inflation, it _______necessary mean that ___ commodities have higher prices; in some instances, the prices of some commodities ____ even if there is inflation. What is difficult about inflation is that prices rise _________

Profit-Push Inflation These are pressures on inflation resulting to ________ markups by businesses.

_____________is an alternative measure of inflation that is calculated as the rate of change in the CPI that excludes the items that have transitory effects on the CPI.

_________ is the difference between the original price and the selling price.

__________ is a sustained decrease in the average price level.

The CPI statistics cover ____________, __________ and __________ people, people whose incomes are ______ the federal poverty threshold, and _______ people.

Conversely, an oversupply of commodities tends to induce the opposite effect on prices.

Creditors. Same with the situation being faced by _______ creditors are hurt because by the time they will receive the payment, the amount of goods and services that can be bought by the sum of money has _____ purchasing power during inflationary times. are somehow receiving "cheap" pesos. It happens whenever interest payments may be _____ than the inflation rate.

____________ refers to a period of extremely high inflation reaching 100% and above.

The interest rate of savings deposits may not cover the cost of inflation.

When demand for goods/service exceeds production capacity.

Gainers during Inflation :

Land owners gain during inflation as the value of land and other fixed assets appreciate.

__________ results to redistributive effects, meaning, the effects of _________ are redistributed to different individuals, and as such, there will be gainers and losers.

These are pressures on inflation resulting to higher markups by businesses.

Losers during inflation :

They are paying back "cheap" pesos to their creditors that have less purchasing power.

These items or commodity groups and their corresponding CPI weights are listed as follows: @rice @corn @ fruits and vegetables @LPG @kerosene @oil, gasoline, and diesel

Debtors. They are paying back "______" pesos to their creditors that have _____ purchasing power.

Same with the situation being faced by savers, creditors are hurt because by the time they will receive the payment, the amount of goods and services that can be bought by the sum of money has less purchasing power during inflationary times. are somehow receiving "cheap" pesos.

CPI Statistics : People ____ included in the report are non metro or ________ populations, farm families, armed forces, people currently incarcerated, and those in mental hospitals.

___________ represents the rate at which the cost of goods and services increase over a period of time.

Those goods and services are broken down into eight major groups of CPI :

international oil prices, increases in prices of imported raw materials, and hikes in rental rates. These tend to limit of decrease supply, and, assuming no decline in demand for goods and services, push prices up.

Producers. The income of producers _________ when inflation takes place. As the price Of commodities increases, business firms gain _________ returns.

Laborers and office workers who are getting a fixed amount of money monthly cannot keep up with the high prices because their nominal income does not rise with prices.

__________ during inflation are individuals who are hurt when prices are increasing.

The primary assumption of this redistributive effect is that, inflation is ________________.

Suppy Shock to Inflation: These are pressures on inflation resulting from ________ in supply and ______ in the cost of production __________a corresponding expansion in output.

It happens whenever interest payments may be less than the inflation rate.

______________ is used to capture the permanent Component of the inflationary process that can be influenced by monetary policy.

__________ during inflation are the groups of individuals that are helped by unanticipated inflation

Fixed income earners (including _____________). Laborers and office workers who are getting a ______ amount of money monthly ______ keep up with the ____ prices because their nominal income ______ rise with prices. Therefore, the real income of these workers diminishes and they feel the impact of inflation.

When production cost increase prices.

Savers. The interest rate of savings deposits may ____ cover the cost of inflation. If the amount of money that was saved will be withdrawn during the time when the prices are ______, that money will ____ purchasing power.

____________ is calculated as the change in the weighted overall average prices of all goods and services in the CPI basket

These are pressures on inflation resulting from shortages in supply and increases in the cost of production without a Corresponding expansion in output.

when the prices of basic commodities are ____ there is a _____ standard of living and vice versa.

This is in sharp contrast to inflation.

____________ refers to the rate of increase in the average prices of goods and services typically purchased by consumers.

People who have investment in bonds and or stocks lose during the time of inflation because the value of their money invested in securities depreciates in termsof purchasing power.

Inflation has an effect on the ____________ of individuals in the economy. It may _________ the real income (purchasing power) of an individual or individuals but ______ necessarily follow that it ________ the real income of the whole economy.

Therefore, core inflation is used to capture the __________ component of the inflationary process that can be influenced by monetary policy

The ________ represents the cost of a basket of goods and services across the country on a monthly basis. Those goods and services are broken down into ______ major groups

Excess demand pulls the general price level

The kind of inflation rate that the Bangko Sentral ng Pilipinas monitors under its inflation targeting approach is called the _____________ and _____ the core inflation:

It is used as an indicator of the change in the average price of a fixed standard basket of goods and services commonly purchased by households relative to a base year.

If the amount of money that was saved will be withdrawn during the time when the prices are high, that money will lose purchasing power.

Holders of securities. People who have investment in bonds and or stocks _____ during the time of inflation because the value of their money invested in securities _________ in terms of purchasing power.

Demand Pull Inflation : This inflation is characterized by "too much spending chasing too ___ goods„ Pressures on inflation are caused by relatively ________ demand compared to the available supply of goods and services.

Therefore, the real income of these workers diminishes and they feel the impact of inflation.

When price rises, wages rise too, in order to maintain living cost.

When prices _______, producers are given the incentive to produce _____, but buyers suffer, and they will need _____money (in nominal terms) to cope with _______ prices.

The excluded items are subject to volatile price movements and are also affected by supply-side factors and the price changes are not __________ the control of monetary policy.

The CPI represents the cost of a basket of goods and services across the country on a __________ basis. Those goods and services are broken down into eight major groups

Standard basket contains hundreds of consumption items whose price movements are monitored to determine the change in the _____ or the level of inflation.

This inflation is characterized by "too much spending chasing too few goods„ Pressures on inflation are caused by relatively higher demand compared to the available supply of goods and services.