Bicol Region’s headline inflation or overall inflation eased to 4.7 percent in October 2023 from 5.6 percent in September 2023. This makes the regional average inflation from January to October 2023 at 6.1 percent. In October 2022, inflation rate was higher at 7.2 percent.

The downtrend in the overall inflation in October 2023 was primarily brought about by the slower year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 8.0 percent in October 2023 from 10.3 percent in the previous month. Alcoholic beverages and tobacco, with an inflation rate of 10.5 percent during the month from 12.3 percent in September 2023, also contributed to the downtrend of the headline inflation.

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

a. Clothing and footwear, 6.6 percent inflation from 7.4 percent;           
b. Furnishings, household equipment and routine household maintenance, 3.8 percent from 3.9 percent;
c. Recreation, sport and culture, 4.8 percent from 5.3 percent; 
d. Restaurants and accommodation services, 6.2 percent from 6.7 percent; and
e. Personal care, and miscellaneous goods and services, 3.9 percent from  4.0 percent.

In contrast, the following commodity groups showed higher inflation rates during the month:

a. Housing, Water, Electricity, Gas and Other Fuels, -.2.8 percent from  -3.2 percent;
b. Transport, 2.2 percent from 1.1 percent; and
c. Information and communication, 4.3 percent from 1.9 percent.

Health, education services, and financial services retained its previous month’s annual increase at 2.6 percent, 3.2 percent, and zero percent, respectively.

The top three commodity groups contributing to the October 2023 overall inflation were the following:

a. Food and non-alcoholic beverages with 76.7 percent share or 3.6 percentage points;
b. Restaurants and Accommodation services at 8.4 percent share or 0.4 percentage point; and
c. Clothing and footwear at 4.8 percent share or 0.2 percentage point.  

Food inflation at the regional level slowed down to 8.3 percent in October 2023. In the previous month, food inflation was recorded at 10.7 percent, while it was 7.9 percent in October 2022.

The deceleration of food inflation in October 2023 was primarily influenced by the lower annual growth of vegetables, tubers, plantains, cooking bananas and pulses at 17.8 percent during the month from 38.9 percent in September 2023. This was followed by rice with an inflation rate of 15.5 percent in October 2023 from 18.2 percent September 2023.

Lower year-on-year growth rates were also noted in the indices of the following food groups during the month:

a. Corn, 9.0 percent from 10.1 percent;
b. Flour, bread and other bakery products, pasta products, and other cereals, 5.2 percent from 5.7 percent;
c. Fish and other seafood, 5.4 percent from 7.0 percent;
d. Oils and fats, -6.1 percent from -4.9 percent; and 
e. Sugar, confectionery and desserts, 5.1 percent from 10.4 percent.

Meanwhile, compared with their previous month’s inflation rates, higher year-on-year growth rates were observed in the indices of meat and other parts of slaughtered land animals at 1.0 percent during the month from 0.3 percent, milk, other dairy products and eggs at 8.2 percent during the month from 7.7 percent in September 2023, fruits and nuts at 9.9 percent in October 2023 from 9.7 percent in the previous month , and ready-made food and other food products at 5.8 percent from 5.2 percent in the previous month.

Food inflation contributed 74.7 percent or 3.5 percentage points to the overall inflation in October 2023. 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 54.6 percent share or 4.5 percentage points;
b. Vegetables, tubers, plantains, cooking bananas and pulses with 16.3 percent share or 1.4 percentage points; and 
c. Fish and other seafood with 9.8 percent share or 0.8 percentage point.  

_{Table 1. Year-on-Year Inflation Rates of Selected Food Items in Percent, October 2022, September 2023, and October 2023: Bicol Region (2018=100)}