Davao Region inflation drops to 0.3% in September 2019

Davao Region’s inflation continued to drop to 0.3 in the month of September from 1.5 percent in August 2019. This is the lowest inflation recorded in Davao region since October 2015, in which the inflation rate was 0.7 percent. Relatedly, purchasing power of peso (PPP) remained at 82 centavos.

The inflation per province was expected to go down as the Inflation of Davao Region declined. Davao Oriental retained the lowest inflation at negative 1.1 percent in the region, followed by Davao del Norte (0.2%), and Davao del Sur (0.4%). However, Compostela Valley has the highest inflation in the region at 1.2 percent (see Table 1).

The slowdown of inflation in September was mainly due to the slower annual increment of almost all indices, particularly Food and Non-Alcoholic Beverages which were at negative 1.7 from 0.2 in August; Transport (-1.9% from -0.4); and Housing, Water, Electricity, Gas, and Other Fuels (0.5% from 2.0%). Moreover, the following commodity groups posted slower annual rates during the month:

• Furnishing, Household Equipment and Routine Maintenance of the House, 3.7%;

• Recreation and Culture, 2.8%;

• Communication, -0.1%;

• Clothing and Footwear, 2.5%; and

• Health, 4.9%

On the other hand, Alcoholic Beverages and Tobacco showed a significant increase in its index at 12.0% from 4.3%. Restaurant and Miscellaneous Goods and Services also showed a slight increase (3.9% from 3.8%), while Education retained its previous month’s annual rate (see Table 2).

Significant annual decrease in the indices of selected food items such as Rice; Fruits; and Bread and Cereals, were reported at -13.8%, 3.7%, and -10.4 respectively. Moreover, slower annual hikes were seen in the indices of the following selected food items: Corn (-11.7%); Fish (7.0%); Meat (0.9%); Sugar, Jam, Honey, Chocolate and Confectionery (-6.8%); Milk, Cheese and Egg Other food (2.7%); and Oils and Fats (2.7%).

In contrast, Vegetable, and Food Products and N.E.C. showed a significant increase of 3.0% from 0.3% and 10.3% from 9.7 percent respectively.

The region with the lowest inflation was still Zamboanga Peninsula with an inflation rate of negative 1.3 percent and MIMAROPA still holds the region with the highest inflation (2.2%). Moreover, region with lower rates than the national inflation was Ilocos Region, Cagayan Valley, Bicol Region, Central and Eastern Visayas, Zamboanga Peninsula, Caraga Region, Davao Region, SOCCSKSARGEN, and ARMM while regions with higher inflation were CAR, Central Luzon, CALABARZON, MIMAROPA, Western Visayas, Northern Mindanao (see Table 4).

Among the administrative regions in Mindanao, Northern Mindanao still got the highest inflation at 1.0 percent, while Zamboanga Peninsula continued to be the region with the lowest inflation at negative 1.3 percent (see Table 5).