Inflation rate in Davao del Norte is reported at 6.6 percent (2018=100) in December 2022

• ^{Year-on-year change of average CPI for January to December 2022 vs. 2021}
• ^{Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index Philippine Statistics Authority}

^{Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index Philippine Statistics Authority}

Inflation in Davao del Norte

The headline inflation in Davao del Norte increased by 2.3 percentage points in December 2022 (6.6%) compared to its inflation rate in the same month last year, which was recorded at 4.3 percent. The current inflation rate (6.6%) of the province is lower compared to the headline inflation of the Philippines and Davao Region, which stood at 8.1 percent and 9.3 percent, respectively (Table A).

The average inflation of Davao del Norte for the whole year 2022 stood at 5.9 percent (Table B).

Contribution to the Inflation

Table C showed that the December 2022 inflation of Davao del Norte is mostly contributed by the indices of food and non-alcoholic beverages (7.6%); housing, water, electricity, gas and other fuels (7.5%); and transport (8.9%).

Share to the Trend of Inflation

The decrement in the inflation rate of Davao del Norte can be observed with its downward trend from 7.0 percent in November 2022 to 6.6 percent in December 2022. This decrease is mainly contributed by the indices for food and non-alcoholic beverages, from a rate of 8.5 percent in November 2022 to 7.6 percent in December 2022. This is followed by the indices of housing, water, electricity, gas and other fuels (from 7.8% to 7.5%), and clothing and footwear (from 2.3% to 1.8%). (Table D).

Despite the decrease of inflation rate in the province, an upward trend in December 2022 compared to their corresponding rates in November 2022 were observed in Table D for the following commodities:

• Health (from 10.7 to 10.8)
• Transport (from 8.2 to 8.9)
• Information and communication (0.8 to 0.9)
• Recreation, sport and culture (from 4.9 to 4.4)
• Personal care, and miscellaneous goods and services (from 3.2 to 3.4)

It can also be observed that the commodities for furnishings, household equipment and routine household maintenance; education services; restaurants and accommodation services; and financial services has shown no sign of increase nor decrease in inflation rate in comparison to their corresponding rates last month.

The index for food has also shown an downward trend from 8.7 percent in November 2022 to 7.8 percent in December 2022. The share to the downtrend of the food inflation was mostly attributed by the lower annual increase in the price indices of fish and other seafood; meat and other parts of slaughtered land animals; and sugar, confectionery and desserts (Table E.)

Purchasing Power of Peso

The Purchasing Power of Peso (PPP) measures the current value of the peso in reference to its value in the base year. It has an inverse relationship with the Cosumer Price Index (CPI), which means that if the CPI increases, the PPP decreases.

Figure 2 showed that the PPP for the province of Davao del Norte remained at 0.86 starting from the month of September to December 2022. This suggests that Php100.00 in 2018 is currently valued at PhP86.00.

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.

Purchasing Power of Peso. The measure of how much the peso in the base period is worth in the current period.

Note: Consumer Price Indices (CPI) and inflation rates by province and selected cities are posted at the PSA website (https://openstat.psa.gov.ph/).

Approved for Release:

PEPITO D. AMOYEN

Chief Statistical Specialist