Headline Inflation

Bicol Region's headline inflation or overall inflation accelerated to 4.9 percent in December 2023 from 4.5 percent in November 2023. This brings the regional average inflation from January to December 2023 at 5.9 percent. In December 2022, inflation rate was higher at 7.2 percent.  

Main Drivers to the Upward Trend of the Headline Inflation

The uptrend in the overall inflation in December 2023 was primarily brought about by the higher year-on-year growth rate of Housing, Water, Electricity, Gas and Other Fuels at -1. 7 percent in December 2023 from -3. 7 percent in November 2023. This was followed by food and non-alcoholic beverages with 8.1 percent annual increase from 7.9 percent annual growth in November 2023. Transport with a higher inflation rate of 2.0 percent in December 2023 from 1.4 percent in the previous month also contributed to the uptrend of the overall inflation. In addition, annual increase was also noted in the index of Alcoholic beverages and tobacco, with 11.2 percent inflation from 10.7 percent in November 2023.

In contrast, the following commodity groups showed lower inflation rates during the month: 
     a. Clothing and footwear, 5.4 percent inflation from 5.9 percent;
    b. Furnishings, household equipment and routine household maintenance, 3.4 percent from 3. 7 percent;
    c. Recreation, sport and culture, 4.4 percent from 4.7 percent; and
    d. Restaurants and accommodation services, 6.5 percent from 6.8 percent.

Meanwhile, the indices of the following commodity groups retained its previous month's annual rate: 
    a. Health, 2.2 percent;
    b. Information and communication, 3.8 percent;
    c. Education services, 3.2 percent;
    d. Financial services, 0.0 percent; and
    e. Personal care, and miscellaneous goods and services, 3.6 percent.

Main Contributors to the Headline Inflation

The top three commodity groups contributing to the December 2023 overall inflation were the following: 
    a. Food and non-alcoholic beverages with 75.0 percent share or 3. 7 percentage points; 
    b. Restaurants and Accommodation services at 8.5 percent share or 0.4 percentage point; and 
    c. Alcoholic beverages and tobacco at 4.9 percent share or 0.2 percentage point.

Food Inflation

Food inflation at the regional level maintained its annual rate at 8.3 percent in November 2023. In November 2022, food inflation was higher at 8.5 percent.

Main Drivers to the Upward Trend in Inflation

The acceleration of food inflation in December 2023 was primarily brought about by the faster year-on-year increase in rice at 28.4 percent during the month from 22.2 percent in November 2023. Milk, other dairy products and eggs also contributed to the uptrend with a faster inflation rate of 8.8 percent in December 2023 from 7.6 percent in November 2023.

Meanwhile, lower year-on-year growth rates were noted in the indices of the following food groups during the month: 
    a. Corn, 11.2 percent from 12.3 percent; 
    b. Meat and other parts of slaughtered land animals, 0.7 percent from 1.2 percent; 
    c. Fish and other seafood, 4.5 percent from 5.3 percent;
    d. Oils and fats, -7.4 percent from -6.4 percent;
    e. Fruits and nuts, 8.5 percent from 10.4 percent;
    f. Vegetables, tubers, plantains, cooking bananas and pulses, -5.9 percent from 3.3 percent;
    g. Sugar, confectionery and desserts, -0.3 percent from 0.7 percent; and
    h. Ready-made food and other food products, 4.8 percent from 5.2 percent.

Flour, bread and other bakery products, pasta products, and other cereals retained its previous month's annual rates.

Main Contributors to the Food Inflation

Food contributed 73.4 percent or 3.6 percentage points to the overall inflation in December 2023. The food groups with the highest contribution to food inflation during the month were the following: 
    a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, with 83.5 percent share or 7.0 percentage points; 
    b. Milk, other dairy products and eggs with 7.6 percent share or 0.64 percentage point; and 
    c. Fish and other seafood with 7.3 percent share or 0.61 percentage point. 

Table 1. Year-on-Year Inflation Rates of Selected Food Items in Percent, December 2022, November 2023 and December 2023: Bicol Region

(2018=100)

Table 2. Inflation Rate (IR) and Purchasing Power of the Peso (PPP) in Bicol Region, by Province: December 2022, November 2023 and December 2023
(2018=100)

Table 3. Year-on-Year Inflation Rate (IR) by Commodity/Service Group, December 2022, November 2023 and December 2023: Bicol Region
(2018= 100)

Table 4. Consumer Price Index for All Income Households in Bicol Region, by Province and by Commodity/Service Group: December 2023
(2018= 100)

Table 5. Consumer Price Index and Monthly Percent Change For Al Income Households by Commodity Group: November 2023 and December 2023
(2018=100)