The document discusses the concept of inflation in the Philippines. It defines inflation as the general increase in the prices of goods and services over time. Inflation reduces the purchasing power of the Philippine peso. The document identifies different types of inflation and their causes. It also outlines the negative effects of inflation on the economy, such as increased cost of living and uncertainty. The key groups affected by inflation are fixed-income earners, consumers and businesses. Proper understanding of inflation is important for making wise economic decisions.