The year-on-year regional inflation of Davao Region moved upward to 8.9 percent in August 2022, from 8.6 percent in July 2022. This is the highest recorded inflation since January 2022. The average inflation for the first six months of the year stood at 6.3 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 85 centavos in August 2022. This month’s PPP is lower than in August 2021 at 92 centavos. (Table 2)

The increase in the region’s inflation was mainly brought about by the higher annual increase in the index for housing, water, electricity, gas and other fuels at 8.9 percent; education services at 6.8 percent; and furnishings, household equipment and routine household maintenance at 5.6 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. Clothing and footwear at 4.0 percent;

b. Personal care, and miscellaneous goods and services at 4.9 percent;

c. Health at 4.2 percent;

d. Alcoholic beverages and tobacco at 10.0 percent; and

e. Recreation, sport and culture at 4.2 percent.

On the other hand, lower annual increments were observed in the commodity groups for food and non-alcoholic beverages at 9.0 percent; and transport at 18.1 percent. The indices for information and communication, restaurants and accommodation services, and financial services retained their previous month’s inflation rates. (Table 3)

The food index decreased to 9.3 percent in August from 9.7 percent in the previous month. In August 2021, the food index was lower by 6.7 percent.

In addition, the downward inflation trend of food index was mainly attributed to the following food groups:

a. Rice at 1.6 percent;

b. Fish and other seafood at 11.9 percent;

c. Vegetables, tubers, plantains, cooking bananas, and pulses at 5.4 percent;

d. Oils and fats at 28.5 percent; and

e. Fruit and nuts at 4.9 percent.

Meanwhile, higher annual upticks were recorded in flour, bread and other bakery products, pasta products, and other cereals at 7.4 percent; milk, other dairy products and eggs at 5.2 percent; sugar, confectionery and desserts at 36.2 percent; and ready-made food and other food products n.e.c. at 7.1 percent.

On the other hand, corn retained last month’s inflation rate at 22.9 percent. (Table 4)

At the national level, the headline inflation in the country decreased at 6.3 percent in August 2022, from 6.4 percent in the previous month. Among the 17 administrative regions, Zamboanga Peninsula had the highest inflation at 9.1 percent followed by Davao Region at 8.9 percent, and Caraga at 7.5 percent. On the other hand, BARMM had the lowest inflation at 4.9 percent (Table 5).

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

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