Headline Inflation

Bicol Region retained its headline inflation or overall inflation at 3.7 percent in May 2024. This brings the regional average inflation from January 2024 to May 2024 at 3.4 percent. In May 2023, inflation rate was higher at 6.0 percent.

Main Contributors to the Headline Inflation

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

a. Food and non-alcoholic beverages with 76.5 percent share and 2.83 percentage points;
b. Transport with 10.9 percent share and 0.41 percentage point; and
c. Restaurants and Accommodation services with 6.9 percent share and 0.26 percentage point.  

Food Inflation

Food inflation at the regional level further declined to 6.4 percent in May 2024 from 7.6 percent in the previous month. In May 2023, food inflation was higher at 6.8 percent.

Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in May 2024 was mainly brought about by the slower year-on-year increase in rice at 29.1 percent in May 2024 from 33.4 percent in the previous month. This was followed by vegetables, tubers, plantains, cooking bananas and pulses index with a faster annual decrease of -7.2 percent during the month from -4.1 percent in April 2024. Milk, other dairy products and eggs also contributed to the downtrend with               -0.5 percent inflation rate in May 2024 from 1.0 percent in April 2024.

Moreover, lower annual growth rates were noted in the indices of the following food groups during the month:

a. Meat and other parts of slaughtered land animals, 2.2 percent from 2.7 percent; and
b. Fruits and nuts, -0.5 percent from 1.8 percent.

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

a. Corn, 9.7 percent from 9.4 percent;
b. Flour, bread and other bakery products, pasta products, and other cereals, 3.7 percent from 3.4 percent;
c. Fish and other seafood, -1.7 percent from -2.3 percent;
d. Oils and fats, -7.7 percent from -8.5 percent; 
e. Sugar, confectionery and desserts, -5.5 percent from -5.1 percent; and
f. Ready-made food and other food products, nec, 5.2 percent from 4.9 percent.

Main Contributors to the Food Inflation

Food inflation shared 74.7 percent or 2.76 percentage points to the overall inflation in May 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 107.9 percent share and 6.9 percentage points;
b. Meat and other parts of slaughtered land animals, with 4.8 percent share and 0.3 percentage point; and
c. Ready-made food and other food products nec, with 3.1 percent share and 0.2 percentage point.