DAVAO DEL SUR

1. Headline Inflation

In May 2024, the headline inflation of Davao del Sur decreased by 7.1 percent, which is 0.7 percentage points lower than April 2024 inflation. Compared to May 2023, the current inflation rate is greater by 2.1 percentage points, when it was at 5.0 percent. Meanwhile, the province’s average inflation rate stands at 6.3 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 May 2024 was mainly brought about by the decrease in the index of (a) Food and Non-Alcoholic Beverages at 9.4 percent, from 11.1 percent in the previous month. Also, there was a drop in the inflation rate of (b) Housing, Water, Electricity, Gas, and Other Fuels at 4.0 percent from 4.2 percent in the previous month. The third commodity group with the decreased inflation was (c) Furnishings, Household Equipment, and Routine Household Maintenance at 6.6 percent from 7.1 percent in the previous month. And, the fourth commodity group was (d) Recreation, Sport, and Culture at 5.3 percent from 5.4 percent in April 2024.

Meanwhile, increased movement of inflation was observed in the following commodity groups:

(a) Restaurants and Accommodation Services, 8.0 percent; 
(b) Alcoholic Beverages and Tobacco, 10.6 percent; 
(c) Transport, 3.6 percent; 
(d) Personal Care, and Miscellaneous Goods And Services, 6.0 percent; 
(e) Clothing and Footwear, 4.7 percent; 
(f) Health, 6.3 percent;

Relative to the annual rates in the previous month, the following commodity groups remained at the same rate: (a) Education Services, 1.8 percent; (b) Financial Services, 0.0 percent; and (c) Information and Communication, negative 1.1 percent. 
 

2. Food Inflation 

The inflation rate of the Food Index decreased from 11.0 percent in April 2024 to 9.3 percent in May 2024. The decreasing movement was mainly attributed by (a) Cereals and cereal products at 15.4 percent, from 18.6 percent in the previous month. This was followed by (b) Fish and other seafood at 9.9 percent, from 10.9 percent in the previous month. The third food commodity with decreased inflation was (c) Vegetables, tubers, plantains, cooking bananas, and pulses with 14.3 percent, from 14.6 percent in the previous month. Also, (d) fruits and nuts with 29.4 percent, from 34.3 percent in the previous month. It was followed by (e) Milk, other dairy products, and eggs at 1.2 percent, from 6.1 percent in the previous month. And, (f) Meat and other parts of slaughtered land animals at negative 1.5 percent, from negative 0.9 percent in the previous month. 

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

(a) Ready-made food and other food products at 12.5 percent; 
(b) Oils and fats, at negative 0.9 percent; and 
(c) Sugar, confectionery, and desserts, at negative 3.4 percent;

3. Purchasing Power of Peso

The Purchasing Power of Peso (PPP) in Davao del Sur for May 2024 remained unchanged at 0.77, the 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 129.9 in May 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