The inflation in Davao Oriental decreased by 0.3 percentage points from 6.2 percent in April 2022 to 5.9 percent in May 2022. In May 2021, inflation in the province was observed at 7.4 percent. The average inflation for the first five months of the year stood at 5.7 percent. (Table A and Figure 1)

The slight decrease in the province’s inflation was mainly brought about by the annual decrease in the heavily weighted index for food and non-alcoholic beverages at 3.9 percent from 5.3 percent inflation recorded in the previous month. The annual increments in the index of clothing and footwear also decreased to 4.4 percent from 4.9 percent in April 2022.

Meanwhile, annual upticks accelerated in the indices of housing, water, electricity, gas, and other fuels at 8.3 percent, alcoholic beverages and tobacco at 9.3 percent, and transport at 18.6 percent which is considered as the effect of high prices of petroleum products. The annual increments of the following indices also increase during the period:

1. Heath, 3.6 percent;
2. Furnishing, household equipment and routine household maintenance, 3.3 percent;
3. Recreation, sport and culture, 3.5 percent; and
4. Personal care, and miscellaneous goods and services, 4.1 percent.

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

For food index, it decreased by 1.4 percentage points from 5.3 percent in the preceding month to 3.9 percent in May 2022. In May 2021, food index was observed at 7.2 percent. (Table D)

The annual growth rate of rice index went down to 0.5 percent during the month from 2.7 percent in the previous month. In addition, a negative inflation was observed in fish and other seafood (ND) index at -2.2 percent.

The following food groups also exhibited lower annual increments during the month:

1. Cereals and cereal products (ND), 3.0 percent;
2. Cereals (ND),1.9 percent;
3. Corn, 6.6 percent;
4. Meat and other parts of slaughtered land animals (ND), 6.3 percent;
5. Milk, other dairy products and eggs (ND), 8.0 percent; and
6. Vegetables, tubers, plantains, cooking bananas and pulses (ND), 15.0 percent.

On the other hand, annual upticks increased in the indices of Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals at 7.0 percent; Oils and fats (ND) at 7.8 percent; Fruits and nuts (ND) at 3.0 percent; Sugar, confectionery and desserts (ND) at 23.4 percent; and Ready-made food and other food products n.e.c. (ND) at 0.8 percent.

During the period, Davao Oriental’s inflation was lower than Davao Region’s average of 6.4 percent but higher than the country’s average of 5.4 percent.

Among provinces and highly urbanized city in Davao Region, Davao Oriental’s inflation of 5.7 percent ranked as the third lowest next to Davao del Norte’s 4.1 percent and Davao Occidental’s 5.1 percent. Davao City and Davao del Sur posted an inflation of 6.7 percent and 6.8 percent, respectively. Highest inflation was noted in the province of Davao de Oro at 9.0 percent.

Purchasing Power of Peso (PPP) remains at 87 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 May 2022 remained at 87 centavos. This implies that Php1.0 in May 2018, as the base year, values only Php0.87 in May 2022. In May 2021, the PPP was at 92 centavos. (Figure 2)

Approved for release:

ROGELIO T. LEBRIA

Chief Statistical Specialist