1. Regional Headline Inflation

The year-on-year headline inflation of Davao Region continued its decline to 3.9 percent in August 2023, from 4.3 percent in July 2023. The average inflation rate from January to August 2023 stood at 6.9 percent. In August 2022, the region’s inflation was higher at 8.9 percent. (Table 1 and Figure 1).

1.1 Main Drivers to the Downtrend of the Regional Headline Inflation

The decline in the region’s overall inflation is primarily due to the slower annual growth rate in Housing, Water, Electricity, Gas and other Fuels at -2.4 percent in August 2023 from 4.2 percent in the previous month. Additionally, the slower annual increments of Education Services, at 3.9 percent from 6.8 percent in July 2023, and Furnishings, Household Equipment and Routine Household Maintenance, at 6.0 percent from 6.1 percent in the previous month, contributed to the downward trend of headline inflation. (Table 2)

On the other hand, higher annual growth rates were observed in the indices of the following commodity groups compared with their previous monthly inflation rates:

a.    Food and Non-Alcoholic Beverages at 6.0 percent; 
b.    Clothing and Footwear at 5.9 percent;
c.    Transport at -0.3 percent;
d.    Information and Communication at 1.7 percent;
e.    Recreation, Sport and Culture at 7.3 percent;
f.    Restaurants and Accommodation Services at 6.8 percent; and
g.    Personal Care, and Miscellaneous Goods and Services at 6.1 percent.

Meanwhile, the indices for Alcoholic Beverages and Tobacco, Health, and Financial Services retained their previous month’s inflation rates.

1.2 Main Contributors to the Regional Headline Inflation

The top three commodity groups contributing to the August 2023 regional headline inflation were the following:

a.    Food and Non-Alcoholic Beverages with 2.6 percentage points
b.    Restaurants and Accommodation Services with 0.5 percentage points; and
c.    Alcoholic Beverages and Tobacco with 0.3 percentage points. (Figure 2)

2. Davao Region Food Inflation

Davao Region’s Food inflation accelerated at 5.8 percent in August 2023 from 5.0 percent in the previous month. In August 2022, Food inflation was higher at 9.3 percent. (Table 3)
 

2.1 Main Drivers to the Upward Trend of Regional Food Inflation

The acceleration of food inflation is primarily influenced by the annual increase in Cereals and Cereal Products, particularly Rice, at 10.1 percent from 7.5 percent in the previous month. This was followed by Fish and Other Seafood at -3.2 percent in August 2023 from -4.8 percent in July 2023. (Table 3)

Also contributing to the uptrend were the faster year-on-year growth of Vegetables, Tubers, Plantains, Cooking Bananas, and Pulses at 12.0 percent; Fruits and Nuts at 15.7 percent; and Oils and Fats at 0.7 percent.

Meanwhile, the following food groups displayed reduced uptake in their annual growth rates:

a.    Corn at 10.7 percent;
b.    Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals at 10.0 percent; 
c.    Meat and other parts of slaughtered land animals at 2.4 percent;
d.    Milk, Other Dairy Products and Eggs at 8.3 percent; and
e.    Sugar, Confectionery and Desserts at 18.4 percent;

The index for Ready-made Food and other Food Products n.e.c. retained its previous month inflation at 7.4 percent.

Meanwhile, higher year-on-year growth rates were observed in the indices of Rice at 5.2 percent from 2.5 percent; Fruits and Nuts at 13.6 percent from 8.2 percent; and.

2.2 Main Contributors to the Regional Food Inflation

The food groups with the highest contribution to food inflation during the month were the following:

a.    Cereals and Cereals Products, which include Rice, Corn, and Flour, Bread and Other Bakery                Products, Pasta Products, and Other Cereals, with 3.5 percentage points;
b.    Vegetables, Tubers, Plantains, Cooking Bananas, and Pulses with 0.8 percentage point; and
c.    Milk, Other Dairy Products and Eggs with 0.6 percentage point. (Figure 3)

4. Regional Inflation Rates

At the national level, the country's headline inflation moved upwards to 5.3 percent in August 2023, from 4.7 percent in the previous month (Table 4).
 

Among the 17 administrative regions, Central Luzon had the highest inflation at 7.0 percent followed by MIMAROPA and Westerns Visayas at 6.1 percent. On the other hand, Eastern Visayas had the lowest inflation at 3.1 percent. (Figure 4)

Note: CPIs and inflation rates by province and selected city are posted at the PSA website (https://openstat.psa.gov.ph/).

APPROVED FOR RELEASE:

RANDOLPH ANTHONY B. GALES
(Chief Statistical Specialist)
Officer-In-Charge
Regional Statistical Services Office 11