The year-on-year regional inflation of Davao Region moved upward to 7.2 percent in June 2022, from 6.4 percent in May 2022. This is the highest recorded inflation since January 2022. The average inflation for the first six months of the year stood at 5.5 percent. (Table 1 and Figure 1)

Purchasing Power of the Peso (PPP) measures the real value of the Philippine peso in a given period relative to its value in the base period. In Davao Region, a peso in 2018 is worth 86 centavos in June 2022. This month’s PPP is lower than in June 2021 at 93 centavos. (Table 2)

The increase in the region’s inflation was mainly brought about by the higher annual increase in the index for food and non-alcoholic beverages at 7.8 percent and transport at 18.5 percent. Furthermore, contributing to the uptrend in the overall inflation during the period were the higher annual increments in the indices of the following commodity groups as compared with their previous month’s inflation rates:

a. Restaurants and accommodation services at 3.6 percent

b. Alcoholic beverages and tobacco at 9.1 percent

c. Housing, water, electricity, gas and other fuels at 5.5 percent

d. Clothing and footwear at 3.2 percent

e. Furnishings, household equipment and routine household maintenance at 4.3 percent

f. Personal care, and miscellaneous goods and services at 4.0 percent

g. Recreation, sport and culture at 3.0 percent

On the other hand, lower indices were observed in the commodity groups for health at 3.5 percent, and information and communication at 0.6 percent. The commodity groups for education services and financial services retained their previous month’s inflation rates at zero percent annual growths. (Table 3)

The food index increased to 8.1 percent in June from 7.2 percent in the previous month. In June 2021, the food index was lower by 3.3 percent.

In addition, a double-digit share to inflation trend of food group was observed in meat and other parts of slaughtered land animals at 10.0 percent and rice at 4.2 percent. Higher annual upticks were recorded in the following food groups:

a. Sugar, confectionery and desserts at 16.3 percent;

b. Vegetables, tubers, plantains, cooking bananas and pulses at 15.5 percent;

c. Corn at 17.9 percent;

d. Flour, Bread And Other Bakery Products, Pasta Products, And Other Cereals at 5.5 percent;

e. Ready-made food and other food products n.e.c. at 5.5 percent;

f. Oils and fats at 25.0 percent; and

g. Fruit and nuts at 5.3 percent

On the other hand, the following indices declined for Fish and other seafood at 7.3 percent, and Milk, other dairy products and eggs at 4.3 percent. (Table 4)

At the national level, the headline inflation in the country increased at 6.1 percent in June 2022, from 5.4 percent in the previous month. Among the 17 administrative regions, Cordillera Administrative Region and Central Luzon had the highest inflation at 7.5 percent followed by Davao Region at 7.2 percent. On the other hand, BARMM had the lowest inflation at 3.1 percent (Table 5).

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

APPROVED FOR RELEASE:

RUBEN D. ABARO, JR., CESE

Regional Director