SPECIAL RELEASE:Summary Inflation Report of Davao Oriental Consumer Price Index (2018=100) August 2022

Reference Number: 

DAVOR-2022-011

Release Date: 

Wednesday, September 7, 2022

 

The inflation in Davao Oriental eases to 7.7 percent in August 2022. This is a slight decrease of 0.8 percentage points compared with the 8.5 percent inflation recorded in July 2022. During the same period in 2021, inflation in the province was observed at 9.6 percent. The average inflation for the first 8 months of the year stood at 6.6 percent. (Table A and B, and Figure 1)

The decrease in the province’s inflation during the period was mainly due to the decline in the annual increment of the heavily weighted index for Food and Non-alcoholic Beverages which was computed at 5.7 percent during the month. This is 1.1 percentage points lower than the 6.8 percent inflation recorded in July 2022. The indices of Transport (17.2%) and Furnishings, Household Equipment and Routine Household Maintenance (3.0%) also had a downward trend this month.

Meanwhile, inflation in the index of Education Services increased to 13.1 percent; its first movement since May 2020. Housing, Water, Electricity, Gas, and Other Fuels also increased from 11.8 percent in July 2022 to 13.0 percent in August 2022. The following indices also showed an upward trend during the period:

  • Personal Care, and Miscellaneous Goods and Services, 6.0 percent;
  • Clothing and Footwear, 5.3 percent;
  • Recreation, Sport, and Culture, 4.9 percent;
  • Health, 3.8 percent.

The rest of the commodity groups either retained their previous month’s inflation rates or had zero percent annual growths.

Moreover, the index for Food and Non-alcoholic Beverages remained to be the biggest contributor to the province’s inflation with 38.7 percent. This was followed by the indices of Housing, Water, Electricity, Gas, and Other Fuels with 26.0 percent and by Transport with 18.9 percent.

Additionally, the annual increments for food index decreased by 1.1 percentage points from 6.8 percent in the preceding month to 5.8 percent in August 2022. In August 2021, inflation for food index was observed at 12.3 percent. (Table D)

The annual growth rate of Fish and Other Seafood decreased to -2.4 percent from 4.9 percent in the previous month. Other food groups which inflation declined during the month include Corn (-5.3%); Vegetables, Tubers, Plantains, Cooking Bananas and Pulses (17.4%);

Rice (1.8%); and Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals (7.9%). On the other hand, inflation in the food group of Sugar, Confectionery, and Desserts rose to 55.3 percent from 39.9 percent in the previous month. Oils and Fats also increased to 13.3 percent from 6.7 percent. The following food groups also exhibited an upward trend during the month:

  • Fruits and Nuts, 6.5 percent;
  • Meat and Other Parts of Slaughtered Land Animals, 14.0 percent;
  • Ready-made Food and Other Food Products n.e.c.,6.4 percent; and
  • Milk, Other Dairy Products and Eggs, 7.9 percent.

Among food groups, Meat and Other Parts of Slaughtered Land Animals (14.0%) was the largest contributor to inflation with 35.2 percent. This was followed Vegetables, Tubers, Plantains, Cooking Bananas and Pulses (17.4%) with 20.9 percent and by Sugar, Confectionery, and Desserts (55.3%) with 20.4 percent.

During the period, Davao Oriental’s inflation was lower than Davao Region’s average of 8.9 percent but higher than the country’s average of 6.3 percent.

Among provinces and highly urbanized city in Davao Region, Davao Oriental’s inflation of 7.7 percent ranked as the second lowest next to Davao del Norte’s 6.9 percent. Davao de Oro’s inflation of 10.2 percent remains the highest in the region; followed by Davao City’s 9.6 percent, by Davao Occidental’s 8.7 percent, and Davao del Sur’s 8.3 percent. (Table E)

Purchasing Power of Peso (PPP) remains at 84 centavos

Purchasing Power of Peso (PPP) shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100. The PPP is inversely related to inflation rate. Thus, as the inflation rate increases, PPP declines.

The PPP in August 2022 stood at 84 centavos. This means that the amount of PhP100.00 in 2018 is equivalent to PhP84.32 in August 2022. Similarly, you will need PhP118.60 to purchase the same set of goods and services worth Php100.00 in 2018. In August 2021, the PPP was at 91 centavos. (Figure 2)

 

Approved for release:

ROGELIO T. LEBRIA

Chief Statistical Specialist

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