GLOBAL inflation breached 7.4 percent this year, according to Statista. This is the highest since 1996 and even surpasses the 6.3 percent caused by the 2008 financial market crash. While the pandemic led to a drop to around 3.23 percent, factors such as supply chain issues, economic volatility, rising commodity prices, and the war between Russia and Ukraine have led to the current rise.

The Philippines, which is still rebuilding its pandemic-hit economy, expectedly isn't immune. Inflation hit a four-year high of 6.9 percent in September, above a Reuters poll forecast of 6.7 percent and the central bank's full-year target of 2-4 percent. While the Bangko Sentral ng Pilipinas is working to bring the percentage down, Filipino consumers are feeling the pinch. In connection to the field of accounting, the question to ask is how will this current crisis affect Philippine taxation?