LEGAZPI CITY --- The Bicol region’s inflation rate dropped during the past two month- period, the regional office of the National Statistics Coordination Board here said in a report over the weekend.

        The agency said that after peaking in July, Bicol’s annual inflation rate dropped further to 12.6 percent in September from 13.4 percent in August.

        The 0.8 percentage point decline was due to the general decrease in inflation rates on Food, Beverages and Tobacco, Services and Fuel, Light and Water commodity groups.

         October’s level however, was 9.7 percentage points higher compared to the same period last year and 0.7 percentage points faster than the national average.

        Bicol registered the 5th lowest inflation rate among the regions of the country, with only the National Capital Region recording single-digit inflation rate for the month of September.

        The NSCB noted that fuel, light and water dropped by 2.0 percentage points, due to the continuing decline of fuel prices in the world market. Food, Beverages and Tobacco and Services commodity group shed 1.2 and 0.7 percentage point apiece, the report said.

        Statistics showed that majority of the food items included in the region’s market basket posted declines in inflation rate, enough to pull down the overall level of the Food group. Cereal preparations, fish, fruits and vegetables and miscellaneous foods were among those with higher inflation rates for the month. Registering increase in inflation rates were Clothing (0.3 percentage point), Housing and Repairs (0.2 percentage point) and Miscellaneous commodity group (0.3 percentage point).

        Average prices of consumer goods dropped slightly with the monthly Consumer Price Index (CPI), shedding 0.3 point, settling at 158.3. Contributing to the overall drop is the Fuel, Light and Water declining by 3.3 points, Services by 0.8 point and Food, Beverages and Tobacco by 0.2 point. The rest of the commodity groups recorded increases: Miscellaneous commodity group (0.5 point) and Clothing and Housing and Repairs (0.4 point) each.

        The study also revealed that on a month-on-month basis, average inflation rate in the Bicol Region remained unchanged from its previous month’s level of negative 0.2 percent. Decline in inflation rates for Services (2.0 percentage points), Fuel, Light and Water (1.0 percentage points) and Housing and Repairs (0.1 percentage point) sustained this month’s level. Increase in inflation rates were however observed in Food, Beverages and Tobacco (0.7 percentage point) and Clothing and Miscellaneous commodity groups (0.2 percentage point apiece).

         The purchasing power of the peso in Bicol Region remained at 63 centavos in September 2008 from P1.00 in 2000, the NSCB bared.