CITY OF DAVAO

In March 2023, the headline inflation rate in the City of Davao decreased to 8.8 percent, 1.0 percentage point lower than the previous month's rate of 9.8 percent. The average inflation rate from January to April 2023 was 9.8 percent. (Table A and Figure 1).

Among the thirteen commodity groups, Food and Non-Alcoholic Beverages had the largest share to inflation with inflation rate of 6.7 percent in April 2023, down from 9.0 percent in March 2023. It was followed by Housing, Water, Electricity, Gas and Other Fuels at 10.2 percent, down from 10.7 percent in the previous month. The third commodity with the highest share was Furnishings, Household Equipment and Routine Household Maintenance at 8.9 percent, down from 9.5 percent in the previous month. Likewise, relative to their annual rates in March 2023, lower year-on-year inflation rates were also observed in the following commodity groups:

1. Personal Care, and Miscellaneous Goods and Services, 10.5 percent; and
2. Health, 6.1 percent.

On the contrary, higher increments were observed in the indices of (a) Alcoholic Beverages and Tobacco at 24.5 percent; (b) Clothing and Footwear at 9.7 percent; (c) Information and Communication at 1.7 percent; and (d) Recreation, Sport and Culture at 6.1 percent. The inflation rate of the rest of the thirteen (13) commodity groups, on the other hand, remained equal.

Meanwhile, in April 2023, majority of the food groups exhibited lower inflation rates which resulted to slower food inflation in general. From 8.6 percent in the previous month, food inflation decreased to 6.0 percent in April 2023. The decrease was mainly due to lower (a) Fish and other Seafood index at -9.0 percent from -3.7 in the previous month; (b) Vegetables, Tubers, Plantains, Cooking Bananas and Pulses at 14.1 percent from 24.0 percent in the previous month; and (c) Meat and Other Parts of Slaughtered Land Animals at 8.5 percent, down from 10.4 percent in March 2023.  Furthermore, lower rates were also observed in the following food groups:

1. Rice, 0.6 percent;
2. Flour, Bread and Other Bakery Products, Past Products and Other Cereals, 12.0 percent;
3. Milk, other Dairy Products and Eggs, 10.7 percent;
4. Sugary, Confectionery and Desserts, 34.4 percent; and
5. Ready-Made Food and other Food Products N.E.C, 11.7 percent.

The rest of the food groups, despite the decreasing food inflation in the city, have exhibited higher increments, specifically in the index of Corn at 65.4 percent; Oils and Fats at 28.0 percent; and Fruits and Nuts at 15.5 percent.

In addition, the April 2023 Purchasing Power of Peso (PPP) in Davao City remained equal at 0.81. PPP in April 2022 was at 0.8. (Figure 2)