SPECIAL RELEASE

1.  Average Inflation Rate of Davao del Norte

The average inflation rate of Davao del Norte for the year 2022 is valued at 5.9 percent – higher by 2.3 percentage points compared to the province’s average inflation rate of 3.6 percent in 2021 (Figure 1).

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index,

                     Philippines Statistics Authority

It can also be observed that in 2022, the average inflation rate of Davao del Norte surpasses that of the Philippines’ by 0.1 percentage points but comparatively lower than the Davao Region’s figure which was recorded at 7.4 percent on the same year.

2.  Contribution to the Average Inflation Rate

Table A. shows that the top three contributors to the average inflation rate of Davao del Norte in 2022 are the indices of food and non-alcoholic beverages (4.6%); housing, water, elecrtricity, gas, and other fuels (9.8%); and transport (11.7%).

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index,

                     Philippines Statistics Authority

3.  Share to the Uptrend of the Average Inflation Rate

The increment to the average inflation rate of Davao del Norte can be observed with its upward trend from 3.6 percent in 2021 to 5.9 percent in 2022. This increase is mainly contributed by the higher average annual increase in the index of food and non-alcoholic beverages, from an average inflation rate of 1.9 percent in 2021 to 4.6 percent in 2022. This is followed by the indices of housing, water, electricity, gas and other fuels (from 6.2% to 9.8%), and transport (from 10.5% to 11.7%) (Table B).

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index,

                     Philippines Statistics Authority

Despite the increase in the average inflation rate of Davao del Norte, a downward trend in 2022 can also be observed in Table B for the following indices:

·         Alcoholic beverages, tobacco and narcotics (10.8% to 8.2%)

·         Clothing and footwear (1.9% to 1.6%)

·         Financial services (34.1% to 8.5%)

It can also be observed that the index for information and communication has shown no sign of increase nor decrease in its average inflation rate in 2022 which was recorded at 0.4 percent.

The index for food has shown an upward trend from an average inflation rate of 2.1 percent in 2021 to 4.8 percent in 2022. This increase is mainly contributed by the higher average annual increase in the index for rice which recorded an average inflation rate of -2.3 percent in 2022 from a rate of -6.2 percent in 2021. This is followed by the indices for vegetables, tubers, plantains, cooking bananas and pulses (from 2.9% to 10.8%); and sugar, confectionery and desserts (from 1.3% to 19.8%) (Table C).

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index,

                     Philippines Statistics Authority

4.  Average 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 Consumer Price Index (CPI) which means that if the CPI increases, the PPP decreases.

It can be observed in Figure 2 that the average PPP of Davao del Norte is exhibiting a downward trend with its figure recorded at 0.88 in 2022. This suggests that the Php100.00 in 2018 is now valued at Php88.00 in 2022.

    Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index,

                 Philippines Statistics Authority

Approved for Release:

PEPITO D. AMOYEN

Chief Statistical Specialist