DAVAO DEL SUR

1. Headline Inflation

In June 2024, the headline inflation of Davao del Sur decreased at 6.7 percent, which is 0.4 percentage points lower than May 2024 inflation (7.1 percent). Compared to June 2023, the current inflation rate is greater by 2.1 percentage points, when it was at 4.6 percent. Meanwhile, the province’s average inflation rate stands at 6.8 percent (See Table A and Figure 1).

1.1. Main Drivers Contributing to the Movement of Headline Inflation

Among the 13 commodity groups, the decreased headline inflation of Davao del Sur in June 2024 was mainly brought about by the decrease in the index of (a) Food and Non-Alcoholic Beverages at 8.2 percent, from 9.4 percent in the previous month. Also, there was a decrease in the inflation rate of (b) Transport at 2.3 percent, from 3.6 percent in the previous month. The third commodity group with the declined inflation was (c) Alcoholic Beverages and Tobacco at 10.4 percent, from 10.6 percent in the previous month. And, decreased inflation of (d) Personal Care, Miscellaneous Goods and Services at 5.9 percent from 6.0 percent in May 2024.

Meanwhile, ascending movement of prices was observed in the following commodity groups:

(a) Clothing and Footwear, 4.9 percent; 
(b) Housing, Water, Electricity, Gas and Other Fuels, 5.1 percent; 
(c) Furnishings, Household Equipment and Routine Household Maintenance, 6.8 percent; 
(d) Health, 6.6 percent; 
(e) Information And Communication, negative 1.0 percent; 
(f) Recreation, Sport, and Culture, 5.5 percent;

On the other hand, the following commodity groups remained at the same rates:

(a) Education Services, 1.8 percent;  
(b) Financial Services, 0.0 percent; and  
(c) Restaurants and Accommodation Services, 8.0 percent. 

2. Food Inflation 

The inflation rate of the Food Index decreased to 8.0 percent in June 2024, from 9.3 percent in May 2024. The decreasing movement of prices was mainly attributed to: (a) Fish and other seafood at 6.7 percent, from 9.9 percent in the previous month. This was followed by (b) Vegetables, tubers, plantains, cooking bananas, and pulses at 7.1 percent, from 14.3 percent in the last month. The third food commodity with declining inflation was (c) Fruits and nuts with 24.5 percent, from 29.4 percent in the previous month.  

Lower year-on-year inflation rates were also observed in the following category:

(a) Meat and other parts of slaughtered land animals with negative 2.1 percent; and 
(b) Ready-made food and other food products at 10.0 percent; 

In contrast, higher inflation was observed in the following food commodity groups: 

(a) Cereals and cereal products, 6.6 percent; 
(b) Milk, other dairy products and eggs, 1.5 percent;  
(c) Oils and fats, 0.5 percent; and 
(d) Sugar, confectionery and desserts, negative 2.1 percent.

3. Purchasing Power of Peso

The Purchasing Power of Peso (PPP) in Davao del Sur for June 2024 remained unchanged at 0.77, same as 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 129.7 in June 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) ADELINE G. BATUCAN
(Supervising Statistical Specialist)
Officer-In-Charge
Davao del Sur Provincial Statistical Office