MANILA, Philippines - The shrinking purchasing power of the peso is largely due to reasons within and beyond our control. The pace of inflation and the exchange rate between the peso and benchmark global currencies, especially the US dollar, capture most of these reasons.
Political, financial and economic factors also affect how much peso is needed to purchase various goods and services -- and whether a Filipino can afford them given his/her own income.
The National Economic and Development Authority (NEDA) said the Philippines needs a more vibrant agro-industry sector to help boost the poor's incomes and stretch Filipino's pesos. Food prices alone increased by an average of 35% in the past 6 years, according to NEDA National Planning and Policy Staff Director Rosemarie Edillon.
"We really need a more vibrant agro-industry. That will link the poor who are mostly in agriculture, with the rest of the economy," Edillon said. - Rappler.com
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