Thursday, August 19, 2021
The year-on-year regional inflation of Davao Region rose to 4.9 percent in July 2021. The current inflation is significantly higher as compared to the same month of the previous year at 1.2 percent. This is the highest inflation recorded in the region since December 2018. 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 remained at 78 centavos (see Table 1).
The rising trend in inflation of the region was primarily affected by the higher annual increment in the index of Food and Non-Alcoholic Beverages at 6.3 percent in July 2021, from 4.3 percent in June 2021 (see Table 2). Moreover, the inflation of the following commodity groups also contributed to the high inflation of the region:
• Housing, Water, Electricity, Gas, and Other Fuels, at 4.3 percent from 3.5 percent;
• Health, at 3.1 percent from 2.9 percent; and
• Recreation and Culture, at 0.1 percent from -0.1 percent.
On the other hand, inflation for Restaurant and Miscellaneous Goods and Services; Transport; and Alcoholic Beverages and Tobacco decreased to 2.5 percent, 8.0 percent, and 6.7 percent, respectively. Meanwhile, the index of Clothing and Footwear, Communication, and Education remained at 1.5 percent, 1.0 percent, and 0.1 percent, each.
For selected food items, Vegetables was reported with the highest annual growth rate at 7.1 percent from -4.1 percent in June 2021 (an increase of 11.2 percentage points). Similarly, annual rates were also higher in the indices of Corn (13.4 percent from 6.5 percent); Fish (16.9 percent from 12.2 percent); and Fruits (-12.2 percent from -13.8 percent). On the contrary, the indices of Meat; Oils and Fats; and Sugar, Jam, Honey, Chocolate and Confectionery slightly decrease at 23.2 percent, 3.0 percent, 2.1 percent, respectively as compared to the previous month (see Table 3).
The headline inflation in the country decelerated further to 4.0 percent in July 2021, from 4.1 percent in June 2021. Among the 17 administrative regions, Cagayan Valley had the highest inflation at 6.9 percent, followed by Bicol Region which posted at 6.5 percent. On the other hand, Central Visayas and BARMM had the lowest inflation at 2.0 percent (see Table 4).
Approved for release:
RUBEN D. ABARO JR., CESE