The inflation in Davao Oriental continued its uptrend as it moved up further to 11.3 percent in February 2023, from 10.0 percent in January 2023. The average inflation rate for the first two months of the year stood at 10.6 percent. In February 2022, inflation rate was lower at 4.2 percent. (Tables A and B, and Figure 1) 

The main source of the upward trend of the February 2023 inflation was the higher annual growth rate in the index for food and non-alcoholic beverages at 13.4 percent, from 10.2 percent in the previous month. Housing, water, electricity, gas and other fuels index followed with 12.6 percent annual growth, from 11.7 percent in January 2023. Also contributing to the uptrend in the overall inflation during the period were the higher annual increments in the indices of the following commodity groups: 

a. Health, 5.3 percent;         

b. Recreation, sport and culture, 9.8 percent;           

c. Furnishings, household equipment and routine household maintenance, 5.8 percent; and         

d. Personal care, and miscellaneous goods and services, 9.4 percent.  

 

On the other hand, lower annual increments were observed in the indices of alcoholic beverages and tobacco at 12.1 percent; clothing and footwear at 6.2 percent; transport at 6.6 percent; and restaurants and accommodation services at 7.5 percent. 

 

The indices of the rest of the commodity groups retained their respective January 2023 rates. (Tables C) 

 

For food index, the annual growth rate accelerated to 13.7 percent in February 2023, from 10.3 percent in January 2023. It was observed at 3.7 percent in February 2022. (Table D) 

 

By specific food item, double-digit annual growth rates were noted in the indices of corn at 13.9 percent; and fish, 16.1 percent. 

 

Annual hikes were also higher in the indices of the following food groups: 

 a. Rice, 8.8 percent;           

 b. Meat and other parts of slaughtered land animals, 6.8 percent;           

 c. Milk, other dairy products and eggs, 9.1 percent; and           

 d. Ready-made food and other food products n.e.c., 9.1 percent.  

 

On the contrary, slower annual growth rates were observed in the indices of flour, bread and other bakery products, pasta products, and other cereals at 10.8 percent; oils and fats at 18.9 percent; fruits and nuts at 17.1 percent; vegetables, tubers, plantains, cooking bananas and pulses at 33.0 percent; and sugar, confectionery and desserts at 47.0 percent. (Table D)

All provinces in Davao Region, except Davao del Norte and Davao del Sur, had higher inflation in February 2023. The highest inflation during the month remained in Davao de Oro at 12.3 percent, while the lowest was still registered in Davao del Norte at 6.5 percent. (Table E) 

The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy. 

 

 

The computation of the CPI involves consideration of the following important points: 

 

a. Base Year/Period - A period, usually a year, at which the index number is set to 100. It is the reference point of the index number series. 

 

b. Market Basket - A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers. 

 

c. Weighting System - The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure. 

 

d. Formula - The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2006) weights. 

 

e. Geographic Coverage - CPI values are computed at the national, regional, and provincial levels, and for selected cities. 

 

 

 

Approved for release: 

 

 

EMILY P. TOMOGDAN 

(Supervising Statistical Specialist) 

Officer-in-Charge