2.  Contribution to the Inflation

Table C showed that the February 2023 inflation of Davao del Norte is mostly contributed by the indices of food and non-alcoholic beverages (9.0%); housing, water, electricity, gas and other fuels (4.9%); and transport (6.2%). 

3.    Share to the Trend of Inflation

Table D. Share to the Downtrend of Inflation in Davao del Norte: All income Households in Percent (2018=100)

The decrement in the inflation rate of Davao del Norte can be observed with its downward trend from 6.9 percent in January 2023 to 6.5 percent in February 2023. This decrease is mainly contributed by the indices for housing, water, electricity, gas and other fuels, from a rate of 7.8 percent in January 2023 to 4.9 percent in February 2023. This is followed by the indices of transport (from 8.9% to 6.2%), and health (from 11.0% to 10.7%). (Table D).

Despite the decrease of inflation rate in the province, an upward trend in February 2023 compared to their corresponding rates in January 2023 were observed in Table D for the following commodities:

·      Food and non-alcoholic beverages (from 7.8% to 9.0%)

·      Clothing and footwear (from 1.7% to 2.0%)

·      Recreation, sport and culture (4.6% to 4.9%)

·      Personal care, and miscellaneous goods and services (from 3.6% to 3.7%)

It can also be observed that the commodities for furnishings, household equipment and routine household maintenance; information and communication; 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 upward trend from 7.8 percent in January 2023 to 9.2 percent in February 2022. The uptrend of the food inflation was mostly attributed by the higher annual increase in the price indices of vegetables, tubers, plantains, cooking bananas and pulses; fish and other seafood; and meat and other parts of slaughtered land animals (Table E.)

4.  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 increased and was recorded at 0.85 compared to the recorded PPP of 0.84 in January 2023. This suggests that Php100.00 in 2018 is currently valued at PhP85.00.

 

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/).