Kolehiyo NG Subic Wawandue, Subic, Zambales: Approval Sheet

Kolehiyo Ng Subic
Wawandue , Subic , Zambales

APPROVAL SHEET
This study entitled THE PERCEPTION OF LOCAL CONSUMERS in
Brgy.Matain,Subic, Zambales in AGFLATION Particularly in Rice as Prime Commodity.
Prepared by Retchelle Doctolero , Jennevy Vizcocho and Joseph Abiva in Partial fulfillment of the
requirements for the subject Microeconomics are hereby recommended for real.
_______________________________
Mr. Kristopher Dumpit
Adviser
Approved by the committee n oral examination on February 11, 2014 with a grade of ________.
__________________
_______________________
Mr. Sem Mapa
Mangosing
Ms. Jasmine
____________________
Mrs. Eliza Benitez
DEAN
Recommended for acceptance in partial fulfillment of the requirements for the

degree of Bachelor Of Science In Accountancy.
Kolehiyo Ng Subic
BACHELOR OF SCIENCE IN ACCOUNTANCY

A research entitled:
THE PERCEPTION OF LOCAL CONSUMERS in Brgy. Matain, Subic, Zambales in
AGFLATION: Particularly in Rice as Prime Commodity
In partial fulfillment of requirements for the subject:
MICROECONOMICS
Submitted by:
Jennevy D. Vizcocho
Retchelle Doctolero
Joseph Abiva
Submitted to:
Mr. Kristopher Dumpit
Instructor
Kolehiyo Ng Subic
ACKNOWLEDGEMENT
First and foremost, we would like to take this opportunity to thank God for giving us the
strength to finish this project. Without Him, we would not have the wisdom or the physical ability
to do so. We would also like to express our gratitude to everyone who supported us throughout the
course of this project. We are thankful for their aspiring guidance, invaluably constructive criticism
and friendly advice during the project work. We are sincerely grateful to them for sharing their
truthful and illuminating views on a number of issues related to this paper works.
We express our warm thanks to Mr. Kristopher Dumpit for his support and guidance at our
project.
We are also indebted to our family and friends who have supported us.
Kolehiyo Ng Subic
I. THE PROBLEM AND ITS BACKGROUND

Introduction
Rice is the staple food of the Filipinos. For us, it is not merely a food but
a grain that shapes their way of living, their hopes, and their dreams. They
consider rice as a symbol of their quest for lifes security and emancipation
from hunger. Thus, achieving rice security is intricately related to the nations
struggle in eliminating extreme hunger and poverty. It is a politically sensitive
commodity with which supply disruption causes people distress. An increase in
the price of a standardized good or service or a basket of goods or services
over a specific period of time. Because the nominal amount of money
available in an economy tends to grow larger every year relative to the supply
of goods available for purchase, this overall demand pull tends to cause some
degree of price inflation. It can also be seen in a slightly different form, where
the price of a good is the same year over year, but the amount of the good
received gradually decreases. The rapid increase in prices or price inflation of
rice has sent a shock wave through poor families in our Nation. A term coined
in the late first decade of the 21st century describes generalized inflation led
by rises in agriculture commodity prices called agflation. It is an increase in
the price of food that occurs as a result of increased demand from human
consumption and used as an alternative energy resource.
Kolehiyo Ng Subic
Statement of the Problem

This study aims to present the perception of local consumers in Brgy. Matain in Agflation,
particularly in Rice inflation as the prime commodity.
Specifically, it sought answers the following questions:
1.
2.
3.
How does Agflation affects;

a.
The Market Economy
b.
The consumers
c.
The suppliers
d.
The farmers
To what extent do these following factors contribute to Agflation?

a.
Global Warming
b.
Population Growth
c.
Hoarding
What are the advantages & disadvantages of Agflation?
Significance of the Study

This study will provide a detailed information about agflation. It is important to know &
understand clearly the causes & effects of agflation in the economy. This research will serve as
Kolehiyo Ng Subic
source of information not only to the researchers but also to the consumers, to the farmers, in other
words it is for the benefit of everyone.
Scope and Delimination

The scope of the study is to know the information related to the topic agflation, the study
involves the gathering and analyzing of data from the people living in Brgy. Matain , Subic,
Zambales only.
This study does not cover the perception of consumers in other barangays.
II. Theoretical frameworks

Relevant theories
In recent years there has been a significant rise in global food prices that has given rise to
the term agflation. Many demand and supply factors have contributed to increasing prices:
Increased bio-fuel production, concerns over oil prices, energy security and climate change have
prompted governments to encourage investment in bio-fuels. This has led to increased demand for
wheat, soy, maize and palm oil, and led to a loss of resources for the food chain. Desertification,
global warming and other environmental shifts are decreasing the quantity of available farmland
by over 7 million hectares a year. If global warming continues water supplies could be disrupted
leading to falling food production. Deforestation, soil erosion and exhaustion are examples of the
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Tragedy of the Commons. Speculation by investors, wheat and other prices of commodities have
soared as they found favor among investors who were struggling with poor returns in other
markets. Rising incomes, per capita income has been rising in many emerging market countries
and so too has demand for foodstuffs that have a strong positive income elasticity of demand.
Demographics, demand has grown because of an expanding population - the global population is
expected to rise from 6 billion in 2000 to 7 billion in 2011 and 9 billion by 2050. Currencies, the
weakness of the US dollar due to their recession increased the purchasing power of speculators and
other traders who can buy increased volumes of foodstuffs with currencies other than the US dollar
driving market demand to even higher levels. Export controls, some food exporters limited their
sales overseas so as to provide sufficient food for their own population. But while this helped to
keep domestic prices in check it reduced supply on world
markets forcing prices higher for food importers. There are social and economic advantages from
high food prices for example higher prices are an opportunity to improve farmers incomes and to
stimulate investments in farming. Social consequences of high world food prices. Regressive
effect, lower income families spend a higher proportion of their budgets on food. Higher prices hit
them hardest causing a fall in real living standards. This means that food price inflation can act like
a tax on the poor and have a regressive effect on the distribution of income. Changes in diet, more
expensive food bills might cause families to switch their spending towards cheaper mass-produced
processed foods that are high in salt and sugar. Malnutrition can have damaging social effects
including a rise in obesity, more people suffering from Type-2 diabetes. Deforestation and people
forced off the land if countries give land to growing crops for bio-fuels. Social unrest, high food
prices around the world led to riots in many countries especially in those economies where
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agflation hit the real incomes of the urban poor whose spending on food far outstripped their
spending on other items. Many have died because they have been unable to survive the rise in food
price, the World Bank called this effect the silent tsunami. Food price inflation and government
intervention. Agflation brought a wide number of policy responses from countries around the
world. They included, cash transfer payments to vulnerable households - putting extra strain on
government spending and budget deficits. Welfare payments have also included bread or grain
subsidies specifically targeted to the poor and also rationing card systems to distribute subsidized
wheat. Rise in government spending on emergency food aid programs and school feeding schemes.
Lower tariffs on cereal imports - the World Bank reported in 2009 that twenty-four of fifty-eight
countries sampled had cut import duties and VAT in the wake of rising food inflation. Introduction
of maximum prices on bread,
rice and dairy products (staple products). Using higher interest rates to control demand-pull and
cost-push inflationary pressures. Some countries have considered reintroducing grain buffer stock
programs to mitigate price volatility, despite the costs and problems of such policies during the
1980s and 1990s. Rising food prices will tend to help farmers and rural areas where a high share of
income and employment are linked to prices and profits in the food industry. Higher prices will
stimulate food production although the price elasticity of supply for any one foodstuff is likely to
be low at least in the short term - poorer farmers may lack the access to fresh credit and inputs
needed to respond in the short term to the incentive of higher prices. Higher food prices are
incentives to produce more local food - seed and fertilizer companies will do well. The search for
higher food yields may also benefit multinational agricultural biotechnology corporation. An
increase in food prices helps those countries which export food because (ceteris paribus) it causes a
Kolehiyo Ng Subic
movement in the terms of trade in their favor. A given volume of exports sold internationally will
now buy more imports - and for many lower-income countries this provides an opportunity to
export food and import essential raw materials, components and technology. A sustained period of
higher prices may also cause socially beneficial changes in consumer behavior in richer advanced
countries. Cheap food over a lengthy period of time can result in an over-consumption of food and
drink, especially unhealthy food and alcohol with adverse impacts on health and well-being. Overconsumption can also be damaging to the environment through rising mountains of food waste and
greenhouse gas emissions from the farming sector. Expensive food has a direct cost to lower
income earners many of whom are unable to increase their wages to offset the rising cost of living.
This can lead to reduction in real incomes, a worsening of diets and growing problems of
malnutrition. Food importers and food processors will see a rise in their variable costs - for
countries that are large food importers and this will bring about an inward shift of the short run
aggregate supply curve and contribute to inflationary pressure. The poorest subsistence farmers
who buy additional food at higher prices will be hurt - most rural households are net consumers of
food who have to pay high food prices. Poor people, especially in urban areas, suffer due to rising
food prices - this can be seen in many countries around the world both rich and poor. In the United
States millions of low income families are now partially reliant on food stamps. The World Bank
has claimed that high food prices have caused a sharp rise in relative poverty for millions of poor
families across the world. This leads to an increase in the cost of government welfare programs
designed to mitigate the effects - for example school feeding programs and emergency food aid
schemes. To ensure better domestic supplies for their own population, many food exporters have
opted to impose export taxes, minimum prices, quotas and outright bans on exports of rice and
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wheat. Higher food prices do not necessarily lead to stronger revenues and profits for the worlds
poorest farmers. Much of the gains flows to multinational food businesses with huge monopsony
power in their chosen markets. And for others, the gains of higher prices have been eroded by
increased costs of diesel fuel, fertilizer, pesticides, herbicides, seeds, transportation, increased
volatility from flooding, drought and decreased yields from soil degradation.
Local and Foreign Studies

The economic structure of the Philippines has changed very little over the past
two and a half decades and portrays much of a Latin American prototype
economy: a dualistic structure in which a small proportion of the labor force is
employed in a capital-intensive and highly protected manufacturing sector,
while the larger share of the population is employed in typically lowproductivity agriculture and urban informal services. Over the past twenty-five
years there has been a continuous struggle to maintain macroeconomic
stability with growth being alternately limited by a foreign exchange
constraint, a savings constraint and a fiscal constraint. The period 1970-79 is
crucial since it was at this time that the Philippines accumulated a huge
external debt burden which dictated the structure of economic policy in
subsequent years. This is the reason why this period is included in the
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analysis. The following is a narrative of policy regimes from 1970-1995 based
on Vos and Yap (1996). The general theme is that economic managers,
consistent with the econometric evidence, sought to control inflation by
containing exchange rate movements and restricting money supply.
Stagnation in the process of structural transformation might conceal the
economic growth and changes that did take place in the 1970s and 1980s. The
economy grew at an average rate of over 5 percent during the 1970s. This
reasonable growth performance was largely fuelled by a protectionist
incentive structure, a spillover of the import substitution program in the
1950s, and the massive support from public investment in infrastructure and
energy financed largely by foreign borrowing during the 1975-1979 period.
Based on external shocks affecting the economy, economic performance in
the 1970s can be meaningfully divided into two sub-periods: 1970-74 and
1975-79. This period is characterized by adjustment to the balance-of
payments and short-term external debt crisis which was built up during the
late 1960s. An authoritarian regime is established which implements a
macroeconomic stabilization program. Recovery is supported by a boom in
commodity prices for Philippine exports towards the end of this period, leading
to high growth rates by historical standards. Inflation accelerates to an annual
average of 18.8 percent and is caused by cost-push factors (a major
devaluation and the first oil price shock). This period begins with adjustment
to the first oil price shock and falling prices of major Philippine export
commodities, reflected in the deteriorating terms-of-trade starting in 1975.
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The supply-led external finance boom provides the required adjustment
finance and allows an investment expansion led by import substituting
industries and public infrastructure and energy programs. Manufacturing
activity has the highest growth rate. The period's exceptional growth is also
fuelled by an export-oriented program, which operates under a protectionist
incentive structure and support from the expansion in public infrastructure.
Encouraged by successful changes elsewhere in the region and sector support
of multilateral agencies (the World Bank, in particular), specific government
programs are set up to promote nontraditional manufactured
exports. The program is successful to the extent that the share of

manufactured exports increases from seven percent in 1970 to 75 percent in
1992. Deeper analysis shows that this export success is largely illusory : for
instance, exports of semi-conductors contribute more than 10 percent of total
export earnings, but less than 0.5 percent of total value added and around 0.1
percent of employment. Such stylized facts also apply to garments exports.
Due to the high share of imported inputs in both sectors, backward linkages
with the rest of the economy are small, limiting the diffusion of the sectoral
growth dynamics. Agriculture growth, though below the performance of the
economy, is not unsatisfactory compared with the perfomance of the sector in
neighboring countries, reaching an all-time high often percent growth in 1976.
Agricultural performance is aided by government support in the form of rural
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infrastructure and improved input supplies (fertilizers, credits and highyielding seeds) in a number of important subsectors (especially rice) and
regions. The period also witnesses the aggressive expulsion of the public
sector mainly through newly created public enterprises. The consolidated
public sector deficit reaches an all-time high of 9.3 percent of GNP in 1976.The
massive expansion of externally financed public investment is conditioned in
part by a program of energy-saving, effective import substitution and, in part,
by a program of political consolidation by the Marcos regime. Some analysts
contend that public enterprises were used as a conduit of foreign loans which
would otherwise have not been contracted. GNP per capita almost doubles
from US$ 336 in 1974 to US$ 586 in 1979; but this growth does not seem to
trickle down in equal shares to all population groups. For the agricultural
sector, relative prices (internal terms of trade) appear favorable at the start of
the period, but decline towards the end of the decade. Data on real wages are
scarce
and have to be taken with caution, but available information on the real wage
index for unskilled workers suggests a declining trend since the beginning of
the decade. Falling terms of trade for agriculture, declining real wages, and
employment growth behind output growth (particularly in industry) underlie
the shift in income distribution toward urban profit incomes during this period
of moderate to rapid GNP growth. Since the industrialization process is
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concentrated in the domestic market and basic consumer goods, this shift in
income distribution signals an unbalanced sectoral growth path likely to run
against demand constraints similar to industrialization experiences in Latin
America. Adjustment to another set of external and internal shocks mark the
three subsequent subperiods: 1980-82, 1983-85, 1986-90. This "pre-crisis'
period is characterized by coinciding internal and external shocks. External
shocks are, in sequence, the second oil price shock, the steep increase in
world interest rates, recession in the industrialized countries, and an additional
(short-term) loan-supply shock. The domestic shock results from the external
finance boom of the previous period and the subsequent excessive financial
leverage of public and private firms. A World Bank-supported financial
liberalization program pushes up domestic interest rates and provokes
liquidity problems for many firms and banks, eventually leading to an internal
financial crisis in 1981.The governments attempt to selectively bail out
favored, distressed firms leads to a severe loss of private investment
confidence and massive private capital outflows. The economy slows down
during this period to m: average growth rate of 3.6 percent; real GNP growth
rate drops to 1.9 percent in 1982. The downward trend occurs despite the rise
in public sector deficit from 3.4 percent of GNP in 1979 to 7.3 percent in 1981
in an attempt to counteract the impact of the external shocks. A major
balance of payments crisis
Kolehiyo Ng Subic
emerges as terms of trade continue to fall and available external finance
contracts, a consequence of the crisis in the international financial system
following the default of major debtor countries. Adjustments to the crisis
involve a moratorium on debt repayments, cuts in public expenditure, and a
massive reduction in import volumes. These lead to a fall in private
investment rates. The economy plunges into a major recession. The growth of
money supply (M3) falls to 12.3 percent in 1983-85 from around 18 percent in
the preceding period. Reductions in public expenditures are partly offset by
increased transfers required to keep the struggling public enterprises in
business. The CPSD falls from 6.2 percent to 3.2 percent ok"GNP. Industrial
capacity utilization drops severely as the allocation of foreign exchange
impinges heavily on import-substituting industries, exacerbated by a high
interest rate policy which attempts to arrest private capital outflows ('capital
flight') and counteract the inflationary effects of devaluation. The
manufacturing sector suffers most, showing an 11.5 percent fall in output in
1984 and 15.8 percent in 1985. GNP per capita recedes to the levels reached
in the late 1970s, as it declines from US$ 723 in 1982 to US$ 547 in 1985. The
agricultural terms of trade increase, however, as successive devaluations push
up average agricultural prices. Next to the strong, mainly expenditurereducing domestic adjustment, there are attempts to strengthen the traded
goods sector. A series of devaluations, along with contractionary fiscal and
monetary policies, result in a depreciation of the real effective exchange rate
(REER), which is 17 percent in 1983 and 4.6 percent in 1984. This gives a
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boost to export growth and, along with the severe cuts in imports, creates a
current account surplus in 1986. Nevertheless, the crisis hastens the collapse
of the political regime, as all economic sectors are affected and the domestic
coalition supporting the
Marcos regime sees its financial resources (domestic and foreign) dwindling.
This period starts off with the internal shock of the collapse of the Marcos
regime and the installation of a new government embarking on a program o
quick recovery by pump-priming9 current public expenditures while cutting
public investment. External conditions are slightly less adverse than in the
previous two periods, while debt rescheduling and new sources of external
funding (official bilateral and multilateral flows) provide adjustment finance.
Private and public demand expansion mid enhanced import capacity stimulate
a recovery of private investment. The sharp reduction in political uncertainty
and worldwide acclaim for the peaceful transition also provide a boost. Other
external developments that aid the recovery are the fall in world prices of
crude oil in late 1987, recovery of coconut prices, and the increase in the US
sugar quota to the Philippines in 1986. Growth rebounds to over 5 percent.
Because of the low inflation rate, the REER depreciates sharply in 1986 but
fluctuates in a narrow band the rest of the period. Unfortunately, the new
government does not take advantage of its international popularity and
immediately agrees to honor external debt obligations. This leads to a net
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capital outflow of $7.7 billion between 1986 and 1991. This is one reason the
euphoria is short-lived. The economy reaches full capacity in 1988 and supply
bottlenecks emerge. This is reflected in an acceleration of the inflation rate
from 3.8 percent in 1987 to 10.6 percent in 1989. Another domestic shock in
the forn_ of the most serious coup attempt in 1989 shakes business
confidence. Structural economic problems remain, thereby fuelling the sense
of political instability. GNP per capita recovers to US$ 700 in 1989, though it is
still below the level reached at the beginning of the decade. Another balance
of payments crisis ensues towards the latter part of 1990, hastened by the rise
in oil
prices following the Iraq invasion of Kuwait. Economic recovery toward the end
of 1991 is predicted, but this does not materialize because of a severe energy
crisis that can be traced to a fiscal constraint with public investment in
infrastructure cut back to well below two percent of GNP for most of the
1980s. To make matters worse, the biggest volcanic eruption this century
occurs in mid-1991. GNP growth in this period averages a mere 1.8 percent,
but staying below one percent in 1991-92. The Aquino administration pursues
trade liberalization measures with more vigor. AFTA takes center stage in
1992. A key policy measure is the liberalization of all regulations governing
foreign exchange transactions, which takes effect in the last quarter of 1I92.
The peso depreciates sharply in 1990 but recovers lost ground in 1992 after
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real interest rates rise again. The net result is an appreciation of the REER. A
new government is elected in 1992, promising drastic measures to address the
energy crisis but it continues to paralyze economic activity throughout most of
the year. 80 percent of industrial output is produced, power outrages are a
daily experience. Economic performance is a far cry from the 6 percent growth
target the Philippine government had set out for this period. This target is
based on assumptions about adequate external finance, which has not been
as forthcoming as expected, but obviously this is but one condition which
cannot compensate for all the structural problems of the Philippine economy.
The energy crisis is finally resolved spurring economic recovery. The economic
platform of the Ramos administration crystallizes. Trade liberalization,
deregulation and privatization programs are implemented. Among the affected
sectors are telecommunications and shipping. Profitable state enterprises and
prime government real estate are sold to the private sector. The high points
are the approval of the GATT accord in late 1994
and the issuance of an executive order in July 1995 further reducing tariffs and
setting a timetable for the eventual realization of uniform rates. With a more
liberal environment, capital flows pour into the country. While these are mainly
speculative, the foreign exchange constraint is relaxed as reserves reach a
historical high. The peso appreciates sharply in 1994 but depreciates as the
Central Bank relaxes monetary policy. On the whole, the REER continues to
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appreciate in this period. Meanwhile, proceeds from the privatization program
ease the fiscal constraint. What impedes more rapid investment is the decline
in domestic savings relative to GNP. The administration proudly announces
that per capital GNP surpasses the $1,000 threshold in 1995, three years
ahead of schedule. However, no mention is made of the paradox that real GNP
growth has been constantly below target in the past five years which only
means that the currency is overvalued--a combination of inflation above target
and an exchange rate below target. With tax effort still below the ASEAN norm,
the question is whether growth will be sustained or the Philippines will go the
way of the Tequila syndrome. For developing countries that are major
exporters of food, the rise in world prices helped to bring about an
improvement in the terms of trade and a strong balance of payments. That
said higher food prices for domestic consumers created fresh problems of
poverty. And most developing nations are also dependent on importing food
and other primary commodities whose prices had surged. While competitive
nature of retail supermarkets allows some of the effects of agflation to be
absorbed the price increases that agflation causes are largely passed on to the
end consumer. It has been claimed that the term was invented by analyst
Merrill Lynch used to describe the increase in agricultural product prices, which
most recently has been a consequence of nationwide drought. The climbing
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food prices affect emerging economics more than developed countries
because of significantly higher portion of their household spending going
toward food. Prices instability caused by rising agricultural prices will keep
emerging market economies from implementing stimulus measures,
prolonging their economic slowdown. Agflation will heighten the global
inflationary pressure. Supply setbacks of food will further burden the global
economy. We live in an agflation world and its forcing changes all along the
supply chain. Consumers need to adapt to meet high volume production
demands. A period of rising food prices affects both the demand and supplyside of an economy. And the impact will depend on many factors including:
The patterns of trade for one or more countries for example whether a country
is a net exporter or importer of food. Second, the importance of food
production and exports in economic activity e.g. for example the share of
value added contributed by farming, food processing and other food related
industries. Third, Average incomes for a given country / region and the
percentage of incomes that must be spent on food to ensure a modest but
adequate lifestyle. Lastly, possible effects of rising food prices on variables
such as inflation, interest rates and the exchange rate.
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Conceptual Framework
This figure represents the process of research.
INPUT
What are the
advantages &
PROCESS
OUTPUT
disadvantages
of Agflation?
Distribute
questionnaires
What are the
to the respondents
To be able
to think of
alternatives on
cause & effects
how they can
of agflation?
save money
because of
recent increase
in the prices
of rice.
Hypothesis
The researchers formulated the factors considered that has the biggest impact
as perceived by the respondents of Brgy. Matain Subic Zambales is the agflation in the price of rice
which affects their daily living, particularly in their food budget.
Kolehiyo Ng Subic
Definition Of Terms
INFLATION
a continual increase in the price of goods and services.
HOARDING
A supply or fund stored up and often hidden away
GROSS NATIONAL PRODUCT

The total income of a certain country in a year
Desertification
Deforestation
Kolehiyo Ng Subic
METHGODS AND PROCEDURES

Source of Data
This study was done based on valid procedures. The researchers
conducted survey together with the information and made used the resource
materials.
Instrument Used
The researchers used survey questionnaire to get the perception
of their respondents.
Kolehiyo Ng Subic
REPRESENTATION ANALYSIS AND INTERPRETATION OF DATA

Distribution of Respondents According to Gender
Gender
No. of Respondents
Percentage
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Male
Female
18
12
60%
40%
No. of Respondents
7
3
8
2
0
1
1
3
2
2
1
Percentage
23.33
10
26.67
6.67
0
3.33
3.33
10
6.67
6.67
3.33
Distribution of Respondents According to Age

Age
19-21
22-24
25-27
28-30
31-33
34-36
37-39
40-42
43-45
46-48
49-52
Distribution of Respondents According to Civil Status

Civil Status
Single
Married
No. Of Respondents
19
11
Percentage
63.33
36.67
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SA- Strongly Agree
A- Agree
D- Disagree
SD- Strongly Disagree
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Questions
1.
Is
the
recent
D
2
D
0
increase
in
prices
of
rice
affecting
you?
2.
Are
you willing
to
your
17
11
lessen
daily
consumptio
n of rice?
3. Will you
still buy a
12
13
good quality
of rice even
if its price is
too high?
4.
If
you
1
are
buying rice,
will
you
15
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compare the
prices
of
different
brand?
5. Do you
think if the
supply
rice
10
13
of
goes
up, the price

will
be
decreased?
6.
Does
18
agflation
will
improve the
economic
growth
our
country?
of
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7. Does the
government
13
1
0
is the only
one
Whos
responsible
for
the
increase
in
prices
of
rice?
8. Imports
are a major
tool
18
12
to
combat
agflation
Do
you
agree?
9. Do you
think
market
forces play
a
very
important
role
in
20
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agflation?
10. Do you
think,
is
there
any
1
0
14
solution for
this crisis?
Question 1
Strongly Agree
Agree
Disagree
Strongly Disagree
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Question 2
Strongly Agree
Agree
Disagree
Strongly Disagree
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Question 3
Strongly Agree
Agree
Disagree
Strongly Disagree
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Question 4
Strongly Agree
Agree
Disagree
Strongly Disagree
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Kolehiyo Ng Subic
Question 5
Strongly Agree
Agree
Disagree
Strongly Disagree
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Question 6
Strongly Agree
Agree
Disagree
Strongly Disagree
Kolehiyo Ng Subic
Question 7
Strongly Agree
Agree
Disagree
Strongly Disagree
Kolehiyo Ng Subic
Question 8
Strongly Agree
Agree
Diagree
Strongly Disagree
Kolehiyo Ng Subic
Question 9
Strongly Agree
Agree
Disagree
Strongly Disagree
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Question 10
Strongly Agree
Agree
Disagree
Strongly Disagree
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IV. SUMMARY OF THE FINDINGS, CONCLUSION & RECOMMENDATION

Summary of the Findings
Based on the research, the following information have gathered:
1.
2.
3.
4.
5.
Almost 100% of the respondents of Brgy. Matain affected by Agflation

There were 60% of respondents said that they cant lessen their daily consumption of rice
60% of the respondents said that they will buy a quality that suits to their budget
100% of respondent will still compared different brand based on price
There were 60% of respondents think that the price will be lessen if the supply of rice goes
up
6. There were 80% respondents said that agflation could help for the growth & improvement
of our country
7. There were 77% of respondents said that it is not only the Government whos responsible
for the increase of prices of rice.
8. There were 60% of respondents believe that importing of rice will lead to the decrease in
its price
9. All respondents think market forces contribute a lot for this problem
10. Most of the respondents believe that there still have a solution for this problem. They are
just positive thinkers
Conclusion
Kolehiyo Ng Subic
Based on the study, the researchers found out that most of the respondents answer
that agflation particularly in the increase in the prices of rice, affects greatly especially the poor
households, those who have low income and those who are unemployed. Almost 60% said that
they are willing to lessen their daily consumption of rice, also 50% of them said that they will
consider a low quality of rice, whenever they have a limited budget. Compared to non-poor
consumers, inflation hits poor consumers harder. The poor are highly sensitive to price changes in
food particularly staple food items example rice food, particularly staple food items, such as rice.
Increase in food prices has been the major factor causing agflation in the Philippines. As people
have to buy food, curbing the demand through interest rate increases will bring recession and thus
will have adverse impacts on the poor.
Kolehiyo Ng Subic
Recommendation / Proposal
The researchers would like to recommend based on the findings they have gathered,
the consumer must be able to think of alternatives on how they can save money because of
recent increase in the prices of rice e.g. they can replace rice into sweet potato. Nutritionist
had proven that sweet potato and rice were almost the same. They can also lessen the
money they spend for luxurious material because rice is one of the prime commodity and
they should set-aside for future used. Instead of buying a high quality of rice the
researchers recommend the consumers to buy a cheaper rice then combine it to the high
quality. They can also seek government assistance e.g. JOBOS RICE.
The Government must conduct more projects,especially for the poor who are really
affected by the recent increase in the prices of staples. They have already launched feeding
programs in different schools/towns,work for the unemployed and even have collaborated
with different private organizations. The Government officials must stop the corruption,
instead focus on what they can do to help their constituents.
BIBLIOGRAPHY
http://en.wikipedia.org/wiki/Agflation
http://www.google.com.ph/gdwt/x?gl=PH&hl=enPH&u=http://theviewspaper.net/agflation_pay_more_to_it
Kolehiyo Ng Subic
http://www.google.com.ph/gdwt/x?gl=Ph&hl=enPH&u=http://www.economywatch.com
LOCALE OF THE STUDY
Kolehiyo Ng Subic
CURRICULUM VITAE
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Kolehiyo Ng Subic

Wawandue , Subic , Zambales

Recommended for acceptance in partial fulfillment of the requirements for the

BACHELOR OF SCIENCE IN ACCOUNTANCY

I. THE PROBLEM AND ITS BACKGROUND

Statement of the Problem

How does Agflation affects;

The Market Economy

To what extent do these following factors contribute to Agflation?

What are the advantages & disadvantages of Agflation?

Significance of the Study

Scope and Delimination

II. Theoretical frameworks

Local and Foreign Studies

exports. The program is successful to the extent that the share of

What are the

cause & effects

how they can

GROSS NATIONAL PRODUCT

METHGODS AND PROCEDURES

REPRESENTATION ANALYSIS AND INTERPRETATION OF DATA

Distribution of Respondents According to Age

Distribution of Respondents According to Civil Status

up, the price

IV. SUMMARY OF THE FINDINGS, CONCLUSION & RECOMMENDATION

Almost 100% of the respondents of Brgy. Matain affected by Agflation

LOCALE OF THE STUDY

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