Friday, March 19, 2021
Davao Region’s year-on-year regional inflation has increased further to 2.7 percent in February 2021. This is the highest inflation reported since June 2019. The current inflation was relatively higher as compared to the previous month at 1.9 percent, and of the same month of the previous year at 2.4 percent. On the other hand, the purchasing power of the peso (PPP) which measures the real value of the peso in a given period relative to a chosen reference period decreased to 79 centavos (see Table 1).
The increasing trend in the region’s inflation was primarily caused by the higher annual increment in the index of Transport from 2.3 percent to 4.5 percent (see Table 2). Other commodity groups that contributed to the upward trend of inflation in February were the following:
• Food and Non-Alcoholic Beverages, at 2.8 percent from 1.5 percent;
• Restaurant and Miscellaneous Goods and Services, at 2.7 percent from 2.2 percent; and
• Housing, Water, Electricity, Gas, and Other Fuels, at 2.6 percent from 2.4 percent.
On the other hand, the communication index posted slower annual growth rate at 0.4 percent from 0.9 percent. Meanwhile, the inflation of Education, and Recreation and Culture remained at 0.1 percent and -0.7 percent, respectively since November 2020.
For selected food items, inflation for Meat accelerated further to 18.7 percent from 11.5 percent in January 2021. Similarly, faster annual increases were reported in the indices of Vegetables, Corn, and Food Products, N.E.C. at 9.8 percent, 1.9 percent, and 2.4 percent, respectively. On the contrary, annual increments slowed down for Fruits index at -0.8 percent (see Table 3).
The headline inflation in the country peaked at 4.7 percent in February 2020. Among the 17 administrative regions, Cagayan Valley remained with the highest inflation at 7.9 percent, while Central Visayas had the lowest inflation at 1.0 percent (see Table 4).
Approved for release:
RUBEN D. ABARO JR., CESE