1. Inflation of Davao del Norte

The headline inflation in Davao del Norte increased at 5.7 percent in June 2022 compared to its inflation rate in June last year which was recorded at 3.6 percent. This is also lower compared to the headline inflation of the Philippines as a whole in June 2022 as well as the Davao Region which stood at 6.1 percent and 7.2 percent respectively (Table A). The average inflation of Davao del Norte for the first six months of the year 2022 stood at 4.8 percent (Table B).

2. Contribution to the Inflation

The increase in Davao del Norte’s inflation was mainly brought about by the higher annual increase in the index for housing, water, electricity, gas, and other fuels which has an inflation rate of 10.2 percent; transport, 15.5 percent; and food and non-alcoholic beverages, 3.1 percent.

Meanwhile, annual upticks slowed down in the indices of information and communication which was recorded at 0.1 percent; education services at 0.0 percent; and financial services at 0.0 percent.

3. Month-to-Month

From the recorded 4.7 percent inflation rate in the month of May 2022, it has leaped to 5.7 percent in June 2022. The latter figure is the highest ever recorded inflation rate in Davao del Norte since 2020.

Among the commodity groups, the transport showed the highest increase with an inflation rate of 15.5 percent on June 2022 compared to its 13.5 percent rate on May 2022. The second commodity which exhibited a high increase in inflation rate in a month-to-month comparison is the food and non-alcoholic beverages which stood at 3.1 percent on June 2022 from 1.9 percent on May 2022. Also, the recreation, sport and culture has an increased inflation rate which stood at 1.7 percent on June 2022.

In the contrary, the following commodity groups has shown a decrease in inflation compared to last month:

- Alcoholic Beverages and Tobacco (from 9.2 to 8.9)

- Clothing and footwear (from 1.1 to 1)

- Personal care, and miscellaneous goods and services (from 3.1 to 3.0)

It can also be observed that the commodities for information and communication; education services; restaurants and accomodation services;

and financial services has shown no sign of increase nor decrease in inflation rate in comparison to their corresponding rates last month.

Technical Notes

Consumer Price Index (CPI)

An indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

Based Period

A reference date at which the index is equal to 100. The Base year is 2018.

Inflation Rate

The rate of change of the CPI expressed in percent. It is interpreted in terms of declining purchasing power of peso.

Note: Consumer Price Indices (CPI) and inflation rates by province and selected

cities are posted at the PSA website (https://openstat.psa.gov.ph/).