The region’s headline inflation or the overall inflation slowed down further to 4.6 percent in
July 2023 from 5.3 percent in June 2023. This is the fifth consecutive month of deceleration
in the headline inflation and the lowest since April 2022 with an inflation rate of 4.2 percent.
The average inflation rate from January to July 2023 stood at 6.7 percent. In July 2022, the
inflation rate was recorded at 5.6 percent.
The continued downtrend of overall inflation in July 2023 was primarily brought about by the slower year-on-year increase in housing, water, electricity, gas and other fuels at 3.4 percent during the month from 4.6 percent in June 2023. The slower annual increment observed in the heavily-weighted food and non-alcoholic beverages at 5.9 percent in July 2023 from 6.3 percent in the previous month also contributed to the downward trend of headline inflation. The third main source of deceleration was transport, recording a faster annual decrease of -3.6 percent during the month from -1.9 percent in June 2023.
Compared with their previous month’s inflation rates, slower annual increments were noted in the indices of the following commodity groups during the month:
a. Alcoholic beverages, and tobacco, 12.5 percent;
b. Clothing and footwear, 8.4 percent;
c. Furnishings, household equipment and routine household maintenance, 4.1 percent
d. Health, 3.0 percent;
e. Recreation, sport and culture, 5.4 percent;
f. Restaurants and accommodation services, 7.5 percent; and
g. Personal care, and miscellaneous goods and services, 5.3 percent.
On the contrary, the index of information and communication exhibited a faster year-on-year increase at 1.5 percent during the month from 1.3 percent in June 2023.
Meanwhile, the indices of the rest of the commodity groups retained their respective previous month’s annual growth rates.
The top three commodity groups contributing to the July 2023 headline inflation were the following:
a. Food and non-alcoholic beverages with 57.1 percent share or 2.6 percentage points;
b. Housing, water, electricity, gas and other fuels at 13.3 percent share or 0.6 percentage point; and
c. Restaurants and accommodation services at 10.3 percent share or 0.5 percentage point.
Food inflation at the regional level continued to decelerate at 5.9 percent in July 2023. In the previous month, food inflation was recorded at 6.4 percent, while it was 5.9 percent in July 2022.
The deceleration of food inflation in July 2023 was primarily influenced by slower year-on-year growth in sugar, confectionery and desserts at 24.1 percent during the month from 33.5 percent in the previous month. This was followed by fruits and nuts with an inflation of 1.8 percent in July 2023 from 5.9 percent in June 2023. Also contributing to the downtrend of food inflation in July 2023 was the faster decrease in meat and other parts of slaughtered land animals at -2.2 percent during the month from -1.1 percent in the previous month.
Lower inflation rates during the month were also noted in the indices of the following food items:
a. Corn, 7.7 percent;
b. Flour, bread and other bakery products, pasta products, and other cereals, 6.7 percent;
c. Milk, other dairy products and eggs, 10.9 percent;
d. Oils and fats, 2.1 percent; and
e. Ready-made food and other food products not elsewhere classified, 6.3 percent.
Meanwhile, compared with their previous month’s inflation rates, higher year-on-year growth rates were observed in the indices of fish and other seafood at 8.1 percent from 7.8 percent and vegetables, tubers, plantains, cooking bananas and pulses at 21.4 percent from 13.9 percent. The index of rice retained its previous month’s annual growth rate at 2.8 percent.
The food groups with the highest contribution to food inflation during the month were the following:
a. Vegetables, tubers, plantains, cooking bananas and pulses with 27.2 percent share;
b. Cereals and cereals products with 25.0 percent share; and
c. Fish and other seafood,20.4 percent share.
Table 1. Year-on-Year Inflation Rates of Selected Food Items in Percent, July 2022, June 2023 and July 2023: Bicol Region
(2018=100)
Table 2. Inflation Rate (IR) and Purchasing Power of the Peso (PPP) in Bicol Region, by Province: July 2022, June 2023 and July 2023
(2018=100)
Table 3. Year-on-Year Inflation Rate (IR) by Commodity/Service Group, July 2022, June 2023 and July 2023: Bicol Region
(2018=100)
Table 4. Consumer's Price Index for All Income Households in Bicol Region, by Province and by Commodity/Service Group: July 2023
(2018=100)
Table 5. Consumer's Price Index and Month-on-Month IR For All Income Household by Commodity Group: June 2023 and July 2023
(2018=100)
