1. Regional Headline Inflation

The year-on-year headline inflation of Davao Region accelerated to 5.4 percent in September 2023, from 3.9 percent in August 2023. The average inflation rate from January to September 2023 stood at 6.8 percent. In September 2022, the region’s inflation was higher at 9.6 percent. (Table 1 and Figure 1).

1.1 Main Drivers to the Uptrend of the Regional Headline Inflation

The increase in the region’s overall inflation is primarily due to the faster annual growth rate in Food and Non-Alcoholic Beverages at 8.0 percent from 6.0 percent in the previous month. Additionally, the faster annual increments of Housing, Water, Electricity, Gas and other Fuels at -1.1 percent in September 2023, from -2.4 percent in August 2023, and Restaurants and Accommodation Services at 9.5 percent, from 6.8 percent in the previous month, contributed to the upward trend of regional headline inflation. (Table 2)

Additionally, the indices of the following commodity groups displayed higher annual growth rates compared with their previous monthly inflation rates:

a.    Transport at 1.5 percent from -0.3 percent;
b.    Personal Care, and Miscellaneous Goods and Services at 6.4 percent from 6.1 percent;
c.    Alcoholic Beverages and Tobacco at 15.2 percent from 14.7 percent;
d.    Furnishings, Household Equipment and Routine Household Maintenance, at 6.1 percent from 6.0 percent;
e.    Education Services, at 4.0 percent from 3.9 percent; and
f.    Recreation, Sport and Culture at 7.5 percent from 7.3 percent.

On the other hand, lower annual growth rates were observed in the indices of Health at 5.3 percent from 5.7 percent, and Information and Communication at 1.3 percent from 1.7 percent. Meanwhile, the indices for Clothing and Footwear, 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 September 2023 regional headline inflation were the following:

a.    Food and Non-Alcoholic Beverages with 64.4 percent share or 3.5 percentage points;
b.    Restaurants and Accommodation Services with 13.9 percent share or 0.8 percentage points; and
c.    Alcoholic Beverages and Tobacco with 6.4 percent share or 0.3 percentage points. (Figure 2)
 

2. Davao Region Food Inflation

Davao Region’s Food inflation accelerated at 8.0 percent in September 2023 from 5.8 percent in the previous month. In September 2022, Food inflation was higher at 10.8 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 at 19.0 percent from 10.1 percent in the previous month. This was followed by Meat and Other Parts of Slaughtered Land Animals at 2.9 percent in September 2023 from 2.4 percent in August 2023. (Table 3)

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

a.    Fish and Other Seafood at -5.3 percent from -3.2 percent;
b.    Milk, Other Dairy Products and Eggs at 8.1 percent from 8.3 percent;
c.    Oils and Fats at 0.2 percent from 0.7 percent;
d.    Fruits and Nuts at 14.8 percent from 15.7 percent;
e.    Vegetables, Tubers, Plantains, Cooking Bananas and Pulses at 10.4 percent from 12.0 percent; and
f.    Sugar, Confectionery and Desserts at 3.6 percent from 8.1 percent;

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

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 79.7 percent share or 6.4 percentage points;
b.    Vegetables, Tubers, Plantains, Cooking Bananas, and Pulses with 8.2 percent share or 0.7 percentage point; and
c.    Milk, Other Dairy Products and Eggs with 7.2 percent share or 0.6 percentage point. (Figure 3)
 

4. Regional Inflation Rates

At the national level, the country's headline inflation moved upwards to 6.1 percent in September 2023, from 5.3 percent in the previous month (Table 4).
 

Figure 4. Year-on-Year Regional Inflation Rates in Percent for All Items (2018=100): Philippines, September 2023

Among the 17 administrative regions, Central Luzon had the highest inflation at 7.9 percent followed by MIMAROPA at 6.8 percent and Westerns Visayas at 6.7 percent. On the other hand, Eastern Visayas had the lowest inflation at 3.8 percent. (Figure 4)
 

APPROVED FOR RELEASE:

RANDOLPH ANTHONY B. GALES

(Chief Statistical Specialist)

Officer-In-Charge

Regional Statistical Services Office 11