DAVAO DEL SUR

1. Headline Inflation 

In February 2024, the headline inflation of Davao del Sur went up to 6.4 percent, which is 1.6 percent higher than it was in January 2024. Compared to February 2023, the current inflation rate is lower by 3.0 percentage points, when it was at 9.4 percent. (See Table A and Figure 1). 

1.1. Main Drivers Contributing to the Decline Headline Inflation 

Among the 13 commodity groups, the increased headline inflation of Davao del Sur in February 2024 was mainly brought about by the increase in the index of (a) Housing, Water, Electricity, Gas, and Other Fuels at 3.2 percent, from 0.6 percent in the previous month. Also, there was an increase in the inflation rate of (b) Food and Non-Alcoholic Beverages at 9.4 percent from 8.4 percent in the previous month. The third commodity group with the increased inflation was (c) Transport at 1.3 percent from negative 2.7 percent in the previous month.   

Relative to the annual rates in the previous month, higher year-on-year inflation rates were also observed in the following commodity groups: 

a. Restaurants And Accommodation Services, 6.4 percent; 

b. Furnishings, Household Equipment And Routine Household Maintenance, 5.1 percent; 

c. Personal Care, And Miscellaneous Goods And Services, 3.5 percent; 

d. Clothing And Footwear, 3.0 percent; 

e. Health, 5.2 percent;   

f. Recreation, Sport and Culture, 5.3 percent.

In contrast, lower inflation rates were noted for Alcoholic Beverages And Tobacco at 11.2 percent, from the 13.1 percent in the last month, and Information And Communication at negative 1.1 percent, from 0.0 percent in January 2024. 

Meanwhile, the indices of Education Services (1.8 percent), and Financial Services (0.0 percent) remained unchanged. 

2. Food Inflation 

The inflation rate of the Food Index increased from 8.3 percent in January 2024 to 9.4 percent in February 2024. The increase was mainly due to: (a) Fish and other seafood at 11.0 percent from 7.4 percent in the previous month. The second food commodity with increased inflation was (b) Vegetables, tubers, plantains, cooking bananas and pulses at negative 4.2 percent, from negative 11.7 percent in the previous month. This was followed by (c) Cereals and cereal products from 18.9 percent in January 2024 to 19.6 in February 2024. And, (d) Oils and fats with an inflation rate of negative 16.8 percent, from negative 20.1 percent in the previous month. 

On the other hand, decreased year-on-year inflation rates were observed in the following food groups: 

a. Meat and other parts of slaughtered land animals, negative 1.1 percent; 

b. Milk, other dairy products and eggs, 10.6 percent; 

c. Fruits and nuts, negative 32.4 percent; 

d. Sugar, confectionery and desserts, 11.2 percent; and 

e. Ready-made food and other food products n.e.c., 8.2 percent.  

3. Purchasing Power of Peso 

The Purchasing Power of Peso (PPP) in Davao del Sur for February 2024 was at 0.77, which is 0.01 lower than the previous month’s PPP, as presented in Figure 2. This translates that to purchase the same set of goods and services valued at Php 100 in 2018, one would require Php 130.4 in February 2024. 

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