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A study on the impact of inflation on the performance and profitabilty indicators of
publicly-listed companies in the Philippines
The stock market is traditionally regarded as a leading indicator of the economy. Accordingly,
macroeconomic factors may have an impact on the stock market. In fact, previous related studies
conducted made use of different financial and economic variables to determine the effect of inflation on
the stock market. However, these studies showed varying results and were not very conclusive. For this
reason, this study aimed to determine how inflation affects the stock prices (performance), earnings per
share (profitability) and price-earnings ratio (performance/market value) of publicly listed companies in
the Philippines, and to find the relationship between the aforementioned variables. Per-industry
analyses for education, mining and oil, retail, and food Industry based on inflation matrix were also
conducted which consisted of separate analyses for core inflation and industry-specific inflation.
Furthermore, time-period analyses were conducted as well to establish the difference between the
short term and long term effects of inflation on stock market.
The researchers arrived at different results due to varying data used for each analysis. Using
correlation, panel data regression and OLS regression in determining the relationship and impact of
inflation on the Philippine stock market, the research revealed significant negative effect and
relationship for stock prices. The per-industry analysis using core inflation showed significant negative
effects and relationships between inflation and stock prices, earnings per share and price-earnings ratio
for the mining and oil Industry and a significant positive effect and relationship between inflation and
price/earnings ratio for the retail sector. On the other hand, using industry-specific inflation rate for per
industry analysis, the study revealed significant positive results for stock prices of the food industry and
significant negative results for the price-earnings ratios of the retail sector. Lastly, for time-period
analysis, using time-series econometrics, significant differences using short-term and long-term data
were observed for price/earnings ratio.
Cereno, K. C., Laguatan, C. V., See, C. C., & Cupiado, J. C. (2016
https://animorepository.dlsu.edu.ph/etd_bachelors/7490/
‘Use this app twice daily’: how digital tools are revolutionising patient care
Clinicians are cautious about embracing prescription of health and well-being (i.e., mHealth)
smartphone apps to patients, citing a lack of evidence regarding safety, reliability and clinical
validity as barriers to wider adoption. This doctoral thesis presents an exploration of a new
smartphone mHealth app (QUT Inspire) which virtualises a longstanding respiratory therapy
technique called Incentive Spirometry (i.e., ISy); this new app detects inspired breath sounds
using the built-in phone microphone and displays responsive animated on-screen graphics to
encourage engagement, effort and persistence with virtualised ISy therapy.
Ferguson, C., Hickman, L., & Jackson, D. (2018, July 24). ‘Use this app twice daily’: how digital tools are
revolutionising patient care. ResearchGate.
https://www.researchgate.net/publication/326584284_'Use_this_app_twice_daily'_how_digital
_tools_are_revolutionising_patient_care
MANILA -- Inflation in the Philippines accelerated to a new 14-year high of 8.7% in

January, driven by rising utility, housing and food costs.
The headline rate -- the fastest recorded since November 2008 -- surpassed the 8.1% logged in
December and was well above the 3.0% seen in January last year, the Philippine Statistics
Authority said on Tuesday. The figure also exceeded the central bank's forecast of 7.5% to 8.3%
for the month.
The surge poses a test for the central bank as it looks toward its next interest rate review on Feb. 16.
Gov. Felipe Medalla, who had earlier said inflation might have peaked in December, over the
weekend said the next review "will focus on inflation expectations in the Philippines, not the
U.S. Federal Reserve's 25 basis point rate increase."
The faster-than-expected increase in commodity prices could spur further interest rate hikes in the
Philippines, after the central bank lifted its key rate by 3.5 percentage points in 2022.
The statistics agency on Tuesday said housing, water, electricity, gas and other fuel prices were
collectively the main factor behind the overall uptrend. Prices in this group jumped 8.5% on the
year in January, versus 7.0% in December.
Food inflation, meanwhile, accelerated to 10.7% from 10.2% in December, due to higher prices of
vegetables such as onions. The country has grappled with a shortfall in agricultural supplies,
prompting President Ferdinand Marcos Jr., who is also the agriculture secretary, to favor more
imports.
Macros has called food inflation an "emergency."On Tuesday, he said the latest inflation reading was
"unfortunate." He said the recent importation of agricultural products to boost domestic supply
"will bring the prices down, but that will take a little time."
2/2
Core inflation -- which excludes volatile items such as fish, meat, vegetables and electricity -- rose to
7.4% last month, the fastest clip since April 1999, National Statistician Dennis Mapa told
reporters on Tuesday.
Asked if inflation possibly peaked last month, Mapa said: "As a consumer, I would [hope] that that's
already the peak. Our risk is really the prices of food."
The price pressure is considered a risk to the Philippines' economic performance.
National Economic and Development Authority Secretary Arsenio Balisacan late last month warned that
the "lag effect" of inflation could hurt economic growth, which is expected to moderate to 6% to
7% this year after expanding by 7.6% last year.
Reference: CLIFF VENZON, Nikkei staff writer (February 7, 2023)” “Philippine inflation hit 14-year high of
8.7% in January” Retrieved from. : https://asia.nikkei.com/Economy/Inflation/Philippine-
inflation-hit-14-year-high-of-8.7-in-January

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A study on the impact of inflation on the performance and profitabilty indicators of

publicly-listed companies in the Philippines

Cereno, K. C., Laguatan, C. V., See, C. C., & Cupiado, J. C. (2016

MANILA -- Inflation in the Philippines accelerated to a new 14-year high of 8.7% in

The price pressure is considered a risk to the Philippines' economic performance.

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