Albay

1. The Headline Inflation 

The Albay’s headline inflation or overall inflation increased to 4.1 percent in March 2024 from 2.5 percent in February 2024. This makes the provincial average inflation from January to March 2024 at 3.3 percent. In March 2023, the inflation rate was higher at 6.7 percent. (Figure 1 and Table 1)

1.1 Main Driver to the Uptrend of the Headline Inflation

The uptrend in the overall inflation in March 2024 was primarily brought about by the faster year-on-year increase in the heavily weighted Housing, Water, Electricity, Gas and Other Fuels at -1.0 percent in March 2024 from -5.6 percent in the previous month.  

In addition, faster annual increases were noted in the indices of the following commodity groups during the month:

    a. Food and Non-Alcoholic Beverage, at 8.0 percent from 6.0 percent; 
    b. Transport, at 1.9 percent from 0.9 percent; 
    c. Personal Care, and Miscellaneous Goods and Services, at 2.5 percent from 2.2 percent; 
   d. Furnishings, Household Equipment and Routine Household Maintenance, at 3.3 percent from 3.2 percent; and 
    e. Information and Communication, at 0.3 percent from 0.2 percent.

In contrast, slower annual increase was observed in the indices of following commodity groups for March 2024.

    a. Alcoholic Beverages and Tobacco, at 4.4 percent from 9.4 percent; 
    b. Clothing and Footwear, at 4.5 percent from 5.0 percent; 
    c. Health, at 1.4 percent from 1.5 percent; and 
    d. Recreation, Sports and Culture, at 3.0 percent from 3.1 percent.

The following commodity groups maintained the inflation rate of previous month:

    a. Education Services, at 5.4 percent; 
    b. Restaurant and Accommodation Services, at 3.6 percent; and 
    c. Financial Services, at 0.0 percent.

1.2 Main Contribution to Headline Inflation

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

    a. Food and Non-Alcoholic Beverages with 78.6 percent share or 3.22 percentage  points; 
    b. Restaurants and Accommodation Services with 7.5 percent share or 0.31  percentage points; and 
    c. Clothing and Footwear with 4.0 percent share or 0.16 percentage points.

2. Food Inflation

Food inflation at the provincial level increased to 8.4 percent in March 2024 from 6.2 percent in the previous month. In March 2023, Food inflation was higher at 8.1 percent.

2.1 Main Driver to the Uptrend of Food Inflation

The acceleration of food inflation in March 2024 was primarily influenced by the higher annual growth of Meat and Other Parts of Slaughtered Land Animals at 5.5 percent during the month from 0.2 percent in February 2024. This was followed by Vegetables, Tubers, Plantains, Cooking Bananas and Pulses with an inflation rate of -1.6 percent 
in March 2024 from -11.6 percent and Cereals and Cereal Products at 27.8 percent from 26.4 percent in February 2024.

In contrast, slower annual increase in the indices of the Milk, Other Dairy Products and Eggs at 1.2 percent from 2.1 percent and Ready-Made Food and Other Food Products n.e.c. at 6.4 percent in March 2024 from 7.7 percent of the previous month.

In addition, annual decrease in the inflation was recorded in the following commodity groups:

    a. Fish and Other Seafood, at -2.9 percent from -2.1 percent; 
    b. Oils and Fats, at -10.3 percent from -9.3 percent; 
    c. Fruits and Nuts, at -0.3 percent from 2.1 percent; and 
    d. Sugar, Confectionery and Desserts, at -3.8 percent from -3.2 percent.

2.2 Main Contribution to the Food Inflation

Food inflation contributed 77.3 percent or 3.17 percentage points to the overall inflation in March 2024. Food groups with the highest 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 94.2 percent share or 7.91 percentage points; 
    b. Meat And Other Parts of Slaughtered Land Animals, with 10.3 percent share or 0.86 percentage points; and 
    c. Ready-Made Food and Other Food Products n.e.c., with 2.8 percent share or 0.24 percentage points.

3. Purchasing Power of Peso

The Purchasing Power of Peso in Albay for March 2024 was maintained at Php 0.76 from February 2024. Value of peso is still lower compared the value from March 2023 at Php 0.79. (Refer to Table 2.)