Headline Inflation

Bicol Region’s headline inflation or overall inflation increased to 3.7 percent in March 2024 from 2.9 percent in February 2024. This brings the regional average inflation from January 2024 to March 2024 at 3.2 percent. In March 2023, inflation rate was higher at 7.1 percent.

Main Drivers to the Upward Trend of the Headline Inflation

The uptrend in the overall inflation in March 2024 was primarily influenced by the higher year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 7.3 percent during the month from 6.2 percent in February 2024. In addition, the faster annual increases in the indices of housing, water, electricity, gas and other fuels at -5.3 percent during the month from -6.7 percent in February 2024, and transport at 4.0 percent in March 2024 from 3.0 percent in the previous month contributed to the uptrend.

Moreover, higher inflation rates were also noted in the indices of information and communication at 4.1 percent and personal care and miscellaneous goods and services at 2.7 percent during the month from their respective inflation rates of 4.0 percent and 2.6 percent in the previous month.

In contrast, the following commodity groups registered lower inflation rates during the month:

    a. Alcoholic beverages and tobacco, 8.5 percent from 10.9 percent;
    b. Clothing and footwear, 4.0 percent from 4.1 percent;           
   c. Furnishings, household equipment and routine household maintenance, 2.8 percent from 2.9 percent;
    d. Health, 1.6 percent from 1.8 percent;
    e. Recreation, sport and culture, 4.2 percent from 4.4 percent; and
    f. Restaurants and accommodation services, 4.1 percent from 4.5 percent.

The indices of education and financial services retained their respective previous month’s annual rates at 3.2 percent and 0.0 percent, respectively.

Main Contributors to the Headline Inflation

The top three commodity groups contributing to the March 2024 overall inflation were the following:

    a. Food and non-alcoholic beverages with 89.9 percent share and 3.3 percentage points;
    b. Transport with 7.8 percent share and 0.3 percentage point; and
    c. Restaurants and Accommodation services with 7.2 percent share and 0.3 percentage point.  

Food Inflation

Food inflation at the regional level rose to 7.7 percent in March 2024 from 6.4 percent in the previous month. In March 2023, food inflation was higher at 8.1 percent.

Main Drivers to the Upward Trend of Food Inflation

The acceleration of food inflation in March 2024 was mainly brought about by the faster annual increment in cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals at 26.5 percent during the month from 24.8 percent annual increase in the previous month. In addition, meat and other parts of slaughtered land animals index recorded a 3.6 percent annual increment during the month from 0.4 percent in February 2024. Moreover, slower year-on-year decrease was noted in vegetables, tubers, plantains, cooking bananas and pulses index at 9.2 percent in March 2024 from 14.6 percent annual decline in the previous month. The inflation rate of oils and fats also exhibited a slower annual decline at 8.7 percent in March 2024 from 9.0 percent in February 2024.

On the contrary, lower annual growth rates during the month were observed in the indices of the following food groups:

    a. Fish and other seafood, -5.2 percent from -3.7 percent;
    b. Milk, other dairy products and eggs, 2.1 percent from 3.1 percent;
    c. Fruits and nuts, 5.8 percent from 9.0 percent;
    d. Sugar, confectionery and desserts, -5.1 percent from -4.4 percent; and
    e. Ready-made food and other food products, nec, 5.2 percent from 5.4 percent.

Main Contributors to the Food Inflation

Food inflation shared 88.7 percent or 3.3 percentage points to the overall inflation in March 2024. The top three food groups in terms of contribution to the food inflation during the month were the following:

    a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, with 105.8 percent share and 8.2 percentage points;     
    b. Meat and other parts of slaughtered land animals, with 6.2 percent share and   0.5 percentage point; and
    c. Fruits and nuts, with 3.1 percent share and 0.2 percentage point.

Table 1. Year-on-Year Inflation Rates of Selected Food Items in Percent, March 2023, February 2024, and March 2024: Bicol Region (2018=100)

Table 2. Inflation Rate (IR) and Purchasing Power of Peso (PPP) in Bicol Region, by Province: March 2023, February 2024, and March 2024 (2018=100)

Table 3. Year-on-Year Inflation Rate (IR) by Commodity/Service Group, March 2023, February 2024, and March 2024: Bicol Region (2018=100)

Table 4. Consumer Price Index for All Income Households in Bicol Region by Province and by Commodity/Service Group: March 2024 (2018=100)

Table 5. Consumer Price Index and Monthly Percent Change for All Income Households by Commodity Group: February 2024 and march 2024 (2018=100)