PRICES

   Bicol Region's inflation rate continued to slow down from an average of 13.2 percent during the previous quarter to a single-digit average of 9.7 percent at the end of the current quarter.  This quarter's average inflation rate is, however, still way above the average rate of 4.1 percent during the same period of the previous year.

 

   From 11.4 percent in October, the regional inflation rate settled to 8.1 percent in December, quite near the level that it was about seven months previously.

 

   The month-on-month change in the Consumer Price Index (CPI) for all items showed a two percentage-point decrease from 157.9 in October to 155.9 in December.  Among the items, the heavily-weighted Food, Beverages and Tobacco (FBT) as well as the Services and Fuel, Light, and Water (FLW) items contributed largely to the slowdown in inflation rate.

 

   The price index for the FBT item decreased from 156.4 in October to 155.3 in December owing to the decrease in rice prices.  The Fuel, Light and Water (FLW) item registered a 16.2 percentage-point decrease in CPI during the same period due to a continued price rollback of liquefied petroleum gas (LPG) and kerosene.

 

   The services item, which include transport fares, gasoline and diesel, also recorded a 3.8 percentage-point decrease in CPI on account of the rollback in prices of gasoline and diesel.  All the other items in the consumer basket manifested slight increases in price indices. 

 

   Average Purchasing Power of the Peso (PPP) slightly improved to P0.64 in the fourth quarter from an average of P0.63 in the previous quarter. 

Consumer Price Index, Inflation Rate and Purchasing Power of Peso,

Bicol Region, 4^th Quarter 2008, 3^rd Quarter 2008 and 4^th Quarter 2007

Source: NSO V

   Among the provinces, only Camarines Norte and Catanduanes remained at double-digit average inflation levels in the fourth quarter.  These two provinces recorded the highest percentage-point increase in average CPI from the fourth quarter of the previous year to the current quarter.  This further implies that prices of basic commodities and services in these two provinces increased relatively faster than the other provinces.

   As in the previous quarter, Catanduanes registered the highest average CPI of 169.9 during the current quarter and consequently the lowest average purchasing power of peso (PPP) equal to P0.59.  On the other hand, Camarines Sur maintained the lowest average CPI of 149.3 and the highest average PPP of P0.67, making it the province with the lowest cost of living.