DAVAO DEL SUR

The headline inflation in Davao del Sur rose to 3.1 percent which is 0.4 percentage points higher than the July 2023 inflation rate. Moreover, this inflation rate is 5.2 percentage points lower than the inflation rate in August 2022 posted at 8.3 percent. The average inflation for the year’s first seven months stood at 6.0 percent. (Table A and Figure 1).

The increase in Davao del Sur’s inflation rate was mainly brought about by the increase in the Transport index to negative 4.0 percent from negative 13.6 percent in the revious month. It shared 74.8 percent in the inflation trend which is the highest. Next to that is the increase in the inflation rate of Food and Non-Alcoholic Beverages to 5.4 percent from 5.0 percent in the previous month. It contributed 19.2 percent, the second-highest share in the inflation trend. In addition, the inflation rate of Education Services increased to 1.8 percent from 0.3 percent in the previous month. It contributed the third highest share in the inflation trend with 2.9 percent. Also, the annual upticks of Alcoholic Beverages and Tobacco increased to 12.8 percent from 12.3 percent in the previous month, this shared 1.5 percent in the inflation trend. Other than that, the inflation rate of Restaurants and Accommodation Services also rose to 5.9 percent from 5.7 percent, which contributed 1.2 percent to the inflation trend. Furthermore, the inflation rate of Personal Care, and Miscellaneous Goods and Services also increased to 1.6 percent from 1.5 percent in the previous month, this shared 0.4 percent in the inflation trend.

Meanwhile, the annual upticks of the following indices remained the same:

a. Clothing and Footwear, 1.0 percent;

b. Health, 1.2 percent;

c. Information and Communication, 1.8 percent; and

d. Financial Services, 0.0 percent.

On the other hand, the inflation rate of the index Housing, Water, Electricity, Gas, and Other Fuels decreased to 0.0 percent from 3.4 percent in the previous month. The same goes with the index Furnishings, Household Equipment and Routine Household Maintenance which decreased to 3.6 percent from 3.0 percent in the previous month. Additionally, the inflation rate of Recreation, Sport and Culture also decreased to 2.7 percent from 3.2 percent in the previous month.

The inflation rate of the Food Index increased to 5.2 percent from 5.1 in July 2023. Moreover, the inflation rate of the food index Rice under the food group cereals increased to 13.7 percent from 7.9 percent in the previous month. This contributed 66.5 percent, which is the highest share in the food group’s inflation trend. Following that, Vegetables, Tubers, Plantains, Cooking Bananas and Pulses increased to 16.7 percent from 11.7 percent in the previous month. This contributed 17.6 percent to the food group’s inflation trend which is the second-highest share. Next to that, the Fish and Other Seafood’s inflation rate also increased to negative 8.9 percent from negative 10.2 percent in the previous month. This contributed 11.4 percent to the food group’s inflation trend which is the third-highest share. Moreover, the inflation rate of Fruits and Nuts rose to 9.8 percent from 6.8 percent in the previous month, it shared 4.4 percent to the food group’s inflation trend which is the fourth-highest share. The same goes for Ready-made Food and Other Food Products n.e.c. inflation rate which rose to 4.8 percent from 4.7 percent, it shared 0.2 percent of the food group’s inflation trend.

On the other hand, the inflation rate of the following food groups decreased:

a. Corn, 19.9 percent;

b. Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals; 6.8 percent;

c. Meat and Other Parts of Slaughtered Land Animals, 2.2 percent;

d. Milk, Other Dairy Products and Eggs, 7.2 percent;

e. Oils and Fats, negative 5.0 percent; and

f. Sugar, Confectionery and Desserts, 2.1 percent.

In addition, the August 2023 Purchasing Power of Peso (PPP) in Davao del Sur is 0.81, which is 0.01 higher than the previous month’s PPP. In August 2022, the PPP is at 0.84. (Figure 2)

Technical Notes:

Consumer Price Index (CPI) - The CPI is 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.

Inflation Rate (IR) - The inflation rate is the annual rate of change, or the year-on-year change of the CPI expressed in percent. Inflation is interpreted in terms of the declining purchasing power of money.

Headline Inflation - measures changes in the cost of living based on movements in the prices of a specified basket of major commodities. It refers to the annual rate of change or the year-on-year change in the Consumer Price Index (CPI).

Purchasing Power of the Peso (PPP) - The purchasing power of the peso 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.

Approved for Release:
 

(SGD) ROGELIO T. LEBRIA
Chief Statistical Specialist
Davao del Sur Provincial Statistical Office