Estudillo, Jonna P.Abelardo, Avin Raiel P.Salvania, Miguel Salvania2024-07-302024-07-302022-05-27https://selib.upd.edu.ph/etdir/handle/123456789/162Commodities traded at the international level may affect domestic affairs. Oil is one of the many internationally traded commodities which may affect the general price level in the Philippines, since the country is an importer of the good (The Atlas of Economic Complexity, n.d.). Rice is another commodity of interest. In the Philippines, approximately 118.81 kg of rice is consumed per Filipino (Department of Agriculture, 2020). Covering the period from October 2004 to December 2020, the study uses monthly time series to determine the short run and long run causal relationships between world oil and rice prices and the Philippines’ domestic inflation rate. Data on the domestic inflation rate are derived from the Consumer Price Index (Year-on-Year) released by the Philippine Statistics Authority while the world prices of both crude oil and rice are benchmarked on the BRENT crude oil and Vietnam rice with 5% brokens, respectively. Estimates from the vector autoregression (VAR) and vector error correction (VEC) models are used along with supplementary tests which led to two main conclusions: (1) the world oil price exhibits short run causality on the domestic inflation rate; and (2) the world rice price exhibits long run causality on the domestic inflation rate.enThesis