Table A. Year-on-Year Inflation Rates, All Items in Percent Philippines, Region 11 and Davao del Norte August 2021, July – August 2022

Inflation of Davao del Norte

The headline inflation in Davao del Norte increased by 6.9 percent in August 2022 compared to its inflation rate in the same month last year, which was recorded at 4.7 percent. The current inflation figure is higher compared to the headline inflation of the Philippines as a whole, which stood at 6.3, but lower compared to the recorded inflation of the Davao Region at 8.9 (Table A).

The average inflation of Davao del Norte for the first eight months of the year 2022 stood at 5.3 percent (Table B).

Contribution to the Inflation

The increment 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 13.0 percent; food and non-alcoholic beverages, 4.6 percent; and transport, 14.4 percent (Table C).

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

For the food group, it can be observed in Table D that the top contributors to the food inflation in Davao del Norte were the indices for meat and other parts of slaughtered land animals; sugar, confectionery and desserts; and fish and other seafood, which has a recorded inflation rate of 15.5 percent, 27.0 percent, and 2.9 percent respectively.

Month-on-Month

From the recorded 7.1 percent inflation rate in the month of July 2022, it has eased down to 6.9 percent in August 2022.

Among the commodity groups; furnishings, household equipment and routine household maintenance showed the highest increase with an inflation rate of 2.3 percent on August 2022 compared to its 1.9 percent rate on July 2022. This was followed by the commodity group of housing, water, electricity, gas and other fuels; which stood at 13.0 percent on August 2022 from 11.1 percent on July 2022, and clothing and footwear; which stood at 1.7 percent on August 2022 from 1.5 percent in July 2022.

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

• Transport (from 18.0 to 14.4)
• Food and non-alcoholic beverages (from 5.4 to 4.6)

It can also be observed that the commodities for information and communication; 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.

Purchasing Power of Peso (PPP)

The Purchasing Power of Peso measures the current value of the peso in reference to its value in the base year. It has an inverse relationship with the inflation rate, which means that if the inflation rate increases, the PPP decreases.

The PPP from July 2022 to August 2022 remained at 0.87. This suggests that Php100.00 in 2018 is now currently valued at Php87.00

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/).