Price stabilization is one of the primary objectives of Philippine government policy. Price stability, as opposed to high inflation rates or the rapid increase in the general price level of goods and services, has been shown to be conducive to long run and sustainable growth of the economy. On the other hand, a rapid rise and wide fluctuation in price levels is considered undesirable both on the part of consumers and producers. Therefore, the export sector stands to greatly benefit from a regime of stable prices. Increasing factor costs or input costs has been one of the factors affecting the competitiveness of Philippine exports. Further eroding the competitiveness of our exports is a strong competition from cheap producers like China and Vietnam.
