[In This Economy] The tricky business of taming inflation

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Taming inflation is far from straightforward, and there are too many variables and complex interactions at play. On top of everything, nobody is perfect, and some trial-and-error is bound to happen.

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At any rate, what you should also know is that Philippine inflation is still the highest among the biggest ASEAN countries .Obviously, taming inflation in the Philippines has been quite the challenge. Policymakers themselves are not of one mind as to the best policy to pursue. Essentially, Secretary Balisacan is wary that further interest rate hikes might hurt the economy at large, if it makes borrowing too costly, and therefore discourages too much investments.

Sure, food is a huge part of inflation, and the BSP has nothing to do with food prices. But persistently high inflation plants in the minds of people that maybe inflation will continue to be high in the next months of the year.

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