The inflation in Davao Oriental accelerated to 7.4 percent in June 2022. This is 1.5 percentage points higher than the 5.9 percent inflation recorded in the previous month. In June 2021, inflation in the province was observed at 6.7 percent. The average inflation for the first semester of the year stood at 6.0 percent. (Table A and Figure 1)

The increase in the province’s inflation was mainly brought by the surge in the annual increments of the heavily weighted index for food and nonalcoholic beverages at 5.9 percent from 3.9 percent in the previous month. The index for food and non-alcoholic beverages contributed 66.3 percent to the province’s inflation. Additionally, the annual increments in the indices of transport (21.7 percent) and housing, water, electricity, gas, and other fuels (9.0 percent) ranked as second and third largest contributor to the province’s inflation at 16.6 percent and 6.8 percent, respectively. The following indices also showed higher annual increments during the period:

• Alcoholic Beverages and Tobacco, 11.4 percent;
• Personal Care, and Miscellaneous Goods and Services, 5.3 percent;
• Recreation, Sport and Culture, 5.5 percent;
• Restaurants and Accommodation Services, 4.6 percent; and
• Clothing and Footwear, 4.9 percent.

Meanwhile, inflation rates in the indices of furnishing, household equipment and routine household maintenance (3.2 percent) and health (3.3 percent) decreased during the period

The rest of the commodity groups either retained their previous month’s inflation rates or had zero percent annual growths. (Table C)

Moreover, the annual increments for food index increased by 2.1 percentage points from 3.9 percent in the preceding month to 6.0 percent in June 2022. In June 2021, inflation for food index was observed at 6.1 percent. (Table D)

The annual growth rate of vegetables, tubers, plantains, cooking The annual growth rate of vegetables, tubers, plantains, cooking bananas and pulses accelerated to 21.3 percent from 15.0 percent in the previous month. Meat and other parts of slaughtered land animals (9.4 percent) and rice (3.8 percent) also increased during the period. These three food groups were the largest contributors to food index’s higher inflation.

The following food groups also exhibited higher annual increments compared to its previous month:

• Flour, Bread And Other Bakery Products, Pasta Products, and Other Cereals, 8.3 percent;
• Sugar, confectionery and desserts, 27.3 percent
• Ready-made food and other food products n.e.c., 4.8 percent; and
• Fish and other seafood, -0.3 percent

On the other hand, inflation decreased in the indices of corn at 3.0 percent; milk, other dairy products and eggs at 7.1 percent; and oils and fats at 7.6 percent.

Fruits and nuts retained its previous month’s inflation.

During the period, Davao Oriental’s inflation was higher than Davao Region’s average of 7.2 percent and the country’s average of 6.1 percent.

Among provinces and highly urbanized city in Davao Region, Davao Oriental’s inflation of 7.4 percent, along with Davao del Sur, ranked as the third lowest next to Davao Occidental and Davao City’s 7.0 percent and Davao del Norte’s 5.7 percent. Davao del Norte’s inflation is the lowest in the region. Highest inflation was noted in the province of Davao de Oro at 10.8 percent.

Purchasing Power of Peso (PPP) decreased to 86 centavos

Purchasing Power of Peso (PPP) shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100. The PPP is inversely related to inflation rate. Thus, as the inflation rate increases, PPP declines.

The PPP in June 2022 decreased to 86 centavo from 87 centavos in May 2022. This implies that the amount of Php100.00 in 2018 is equivalent to Php85.54 in June 2022. Similarly, you will need Php116.90 to purchase the same set of goods and services worth Php100.00 in 2018. In June 2021, the PPP was at 92 centavos. (Figure 2)

Approved for release:

ROGELIO T. LEBRIA

Chief Statistical Specialis