Inflation expectations drive pricing decisions in post-crisis Philippines
This paper looks at how people's expectations about prices changing affect inflation in the Philippines. After the global financial crisis, people started looking ahead more when deciding on prices. They now pay more attention to what the government says about inflation. The biggest factor affecting these expectations is the difference between actual inflation and the target set by the government. Other things that matter include interest rates, past inflation rates, how much wages are going up, and how well industries are doing.