Saturday, June 19, 2021
The year-on-year regional inflation of Davao Region accelerated to 4.1% in May 2021. The current inflation is significantly higher as compared to the previous month at 3.7%, and of the same month of the previous year at 1.9%. Moreover, this is the highest inflation recorded in the region since April 2019. 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 acceleration of the region’s inflation was mainly affected by the higher annual increment in the index of Housing, Water, Electricity, Gas, and Other Fuels at 3.4% from 2.5% (see Table 2). Moreover, other commodity groups that contributed to the upward trend of inflation in May were the following:
• Transport, at 12.5% from 12.2%;
• Restaurant and Miscellaneous Goods and Services, at 3.3 percent from 3.1%; and
• Clothing and Footwear, at 1.6% from 1.4%.
On the other hand, inflation for Alcoholic Beverages and Tobacco declined at 7.7% from 8.2%. Meanwhile, the indices of Health, Education, and Recreation and Culture retained their previous rate at 2.7%, 0.1%, and -0.7%, respectively.
For selected food items, inflation decelerated further in the indices of Fruits and Vegetables at -11.6% and -7.6% in May 2021. Similarly, the following food items recorded slowing down in the indices: Corn (0.8%), Food Products, N.E.C. (-4.5%), and Bread and Cereals (-3.5%). On the contrary, the annual growth rate of Fish index posted at 14.3% from 11.4% (see Table 3).
The headline inflation in the country remained at 4.5% for 3 consecutive months, since March 2021. Among the 17 administrative regions, Bicol Region has the highest inflation at 7.5%, while Central Visayas has the lowest inflation at 2.1% (see Table 4).
Approved for release:
RUBEN D. ABARO JR., CESE