Bicol Region's inflation rate slowed down from an average of 9.7 percent during the previous quarter to 8.1 percent at the end of the current quarter, but remained higher than the average of 5.6 percent during the same quarter last year.  From 8.2 percent in January, the regional inflation rate dropped to 7.4 percent in March.

   The month-on-month change in the Consumer Price Index (CPI) for all items showed only a 1.5 index point increase from 157.6 in January to 159.1 in March.  The heavily-weighted Food, Beverages and Tobacco (FBT) increased by two index points from 158.4 in January to 160.4 in March and the Fuel, Light, and Water (FLW) item increased by 4.8 index points from 169.5 to 174.3 in the same period.  Price indices for the rest of the items in the consumer basket, however, were relatively stable.

   Average Purchasing Power of the Peso (PPP) remained steady at P0.63 throughout the first quarter, but is lower than the average of P0.64 in the previous quarter and P0.68 in the same quarter last year.

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

Bicol Region, 1st Quarter 2009, 4th Quarter 2008, and 1st Quarter 2008

Source: NSO V

   Among the provinces, Catanduanes and Masbate had double-digit average inflation levels in the first quarter.  Catanduanes registered the highest average CPI of 171.7 during the current quarter and consequently the lowest average purchasing power of peso (PPP) equal to P0.58.  On the other hand, Camarines Sur maintained the lowest average CPI of 150.7 and the highest average PPP of P0.67, making it the province with the lowest cost of living.