Effects of Inflation to the Budgeting Expenses of Public School

Teachers: A Comparative Study

ABM 12-BLOOMBERG

(GROUP 1)

Terrado, Cyril James J.

Ancheta, Jillian V.

Dela Cruz, R-jay R.

Marquez, Ralph Laurenz A.

Nepuscua, Charles Benson T.

Palaganas, Lance Andrey P.

Solis, Gabriel B.
Rationale:

Inflation is a complex economic phenomenon that affects individuals

and households across the socio-economic spectrum. However, it can be

particularly burdensome for public school teachers due to their relatively

stable, yet often modest, incomes. The cost of living continues to rise,

potentially outpacing the growth of teacher salaries. As a result, teachers

may find it increasingly challenging to cover their basic needs and invest

in professional development or classroom resources. In this globalization

era, inflation is one of the major challenges of most economies in the world

and affects the growth of both developing and developed countries in

diverse ways. As defined, inflation is the persistent rise of the general level

of prices of goods and services for a period of time in a given economy.

Inflation reflects the devaluation of a country’s currency, reducing the

purchasing threshold of each unit of money. Consequently, it is the loss

of real value of the unit of exchange within the economy, which means

each unit of currency buys fewer goods and services as the price level

increases.

The countries with the five highest inflation rates are similar to the

five listed above with the highest interest rates. The current highest

inflation rates by country are Venezuela (400%), Zimbabwe (172%),

Argentina (113%), Sudan (71.6%) and Turkey (47.8%). As of September

2022, Sri Lanka had by far the highest inflation rate in the Asia-Pacific
region at 69.8 percent. Laos followed with 34 percent. Underpinning the

overall low inflation environment has been a sluggish recovery in demand

due to labour market softness and slow income growth. The labour market

softness means China does not face a wage-price spiral threat like the US

and other major economies. The consistent increase in prices may disrupt

the whole economy as the currency losses its real value and the people

may suffer from its consequences, which may lead to earners demanding

for wage increase to offset the higher cost of living. The Philippines is In

the middle of battling record inflation, something which President

Ferdinand Marcos Jr says is “out of control”. For many Filipinos, the

increasing cost of basic commodities was that of a “developed nation”.

Inflation Rate in Philippines averaged 8.09 percent from 1958 until 2023,

reaching an all time high of 62.80 percent. The headline inflation rate in

Pangasinan continuously weakened to 6.1 percent in May 2023 from 6.9

percent in April, this is by far the lowest inflation rate in the province this

year. The inflation rate in the province In May 2022 was posted at 5.2

percent. Inflation can strain the budgeting expenses of public school

teachers by reducing their purchasing power, increasing the cost of living,

and potentially affecting their long-term financial security. Inflation affects

your day-to-day budgeting as you account for higher costs on necessities,

but it can also impact your savings and debt. And with the increase in the

price of goods here, teachers are struggling because of the increase in the

price of products, and whenever the price of the product increases,

daily needs like rice and dishes. Some of the most common factors that

lead to inflation include: an imbalance in supply and demand. Inflation

tends to increase when consumer demand for goods and services increases

when supplies are limited at desirable price levels.

Therefore, the main goal of this study is to determine how inflation

will affect the budgeting expenses of public school teachers at Dagupan

City National High School in 2023–2024 by comparing their financial

circumstances before and after periods of inflation. By conducting this

comparative study, we intend to shed light on the specific budgeting

challenges that public school teachers face. This research will serve as a

basis for informed decision-making, with the ultimate goal of improving

the financial well-being of teachers, ensuring their ability to deliver quality

education, and benefiting the educational system as a whole.

This study aims to identify the effects of the inflation to the budgeting

expenses of the public-school teachers. Specifically, it answers the

following sub problems:

1. What is the demographic profile of public-school teachers in terms of:

a) Age;

b) Teacher Position (e.g., Teacher I, II, III, Master Teacher, etc.) ;

c) Number of Years Teaching;

d) Monthly Salary;

e) Monthly Cost of Expenses;

f) Members in the Family

2. What factors contribute to identify the relation of inflation to the budget

of public-school teachers?

a) Work, Home, and other Expenses before inflation;

b) Work, Home, and other Expenses after inflation

3. What data will we obtain upon conducting this research?

a) By how much percent is the difference between the budgeting

expense before and after inflation?

b) Did the expenses increase or decrease?

teachers?

d) How much more/less affected are those with higher members in the

family than those with lower members in the family?

e) How different are the budgeting expenses of older teachers and

younger teachers?

f) How much more/less affected are older teachers in comparison to

younger teachers?

Research Design:

In this study the researchers used Comparative Research Design

which is defined as a research method that will compare the budgeting

expense of public school teachers before and after inflation. A Comparative

research is the study of similarities and differences between two or more

cases. It is the conceptual structure within which research is conducted

and includes the gathering and analysis of data which are relevant to the

chosen topic. The design of this study will be based in the form of survey

research in which the data will be collected for the objectives of this study.
Locale of the Study:

This study will be centered at Dagupan City National High School

(DNCHS), which is situated in the vibrant city of Dagupan in the province

of Pangasinan. This locale is ideal for the study due to its unique blend of

urban and rural demographics, allowing the researchers to

comprehensively analyze how inflation affects the budgeting expenses of

public school teachers in both densely populated urban areas and more

remote rural settings. Additionally, Dagupan's educational landscape

offers valuable insights into regional variations in economic conditions and

their impact on teachers' financial situations.

Respondents of the Study:

Public school teachers were the respondents we chose for our study

because we believe that they are better able to answer the questions that

we can ask them because they know more about inflation based on our

research title. Additionally, it will make it simpler for us to conduct

research because most public school teachers experience inflation.

Before inflation, public school teachers can plan and budget their

expenses based on a stable purchasing power. However, after inflation, the

rising cost of living erodes the value of their allocated budget, making it

insufficient to cover expenses. This necessitates adjustments in budgeting,

Salary increases may not keep up with inflation, resulting in decreased

purchasing power and potential financial stress. Teachers may need to

make difficult choices to manage their budgets effectively, impacting their

overall well-being and job satisfaction.

Michael, A. (2023, August 25). Which Countries Have The Highest Interest And Inflation
Rates? Forbes Advisor Australia. https://www.forbes.com/advisor/au/personal-
finance/countries-with-highest-interest-inflation
rates/#:~:text=Which%20countries%20have%20the%20highest%20inflation%20rates%
3F,%25
)%20and%20Turkey%20(47.8%25).

Statistica Research Department. (2023). Current inflation rate in the Asia-Pacific region
as of September 2022, by country or territory.
https://www.statista.com/statistics/1341967/apac-current-inflation-rate-by-
country/?fbclid=IwAR1mEynAoanOS4Y1UP5QhJ0NCeO81w3LSslQga1N3S-
5xdtrrqM_jcL6U7Y_aem_AfJg-HqO3x6URk7R_cyZwL04Q29u-2OMy-
yAl3Xl191LB9wVpvhFC7aRWI1ZZhGjdGs#:~:text=As%20of%20September%202022%2
C%20Sri,Pacific%20region%20at%2069.8%20percent

Philippine Statistics Authority. (2023). Summary Inflation Report Consumer Price Index of
Pangasinan (2018=100) May 2023.
https://rsso01.psa.gov.ph/content/summary-inflation-report-consumer-price-index-
pangasinan-2018100-may-
2023?fbclid=IwAR0QYGsNGGunXHmXSa3ZDwH2HGlJjxYtb3FVBsOOVfCz6YQvDr9T
phtVORw_aem_AfLkvAixnbb1DkadI1nAtNXPH4M5yascEF1EWaSs8l8IutlDuCDySMlK2
d4LcroSznQ#:~:text=The%20average%20inflation%20in%20the%20region%20this%20year
%20was%20posted,in%20the%20province%20this%20year

Gatpolintan, J. N., & Avila, E. (2019a). Perceived effects of inflation on budget consumption
of public secondary school teachers in Ragay,. . . ResearchGate.
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dget_Consumption_of_Public_Secondary_School_Teachers_in_Ragay_Camarines_Sur_Phili
ppines;l
CONTRIBUTION:

Rationale Ancheta, Jillian V.

Dela Cruz, R-jay R.

Statement of the Problem Marquez, Ralph Laurenz A.

Research Design Nepuscua, Charles Benson T.

Locale of the Study Solis, Gabriel B.

Respondents of the Study Palaganas, Lance Andrey P.

Bibliography Ancheta, Jillian V.