Inflation rate of Davao del Norte decreased by 0.3 percentage points (2018=100) in December 2023

Table A. Year-on-Year Inflation Rates: All Items in Percent Philippines, Region 11, and Davao del Norte December 2022, November – December 2023

1. Inflation in Davao del Norte 

The headline inflation of Davao del Norte decreased by 3.7 percentage points in December 2023 (2.9%) compared to its inflation rate in the same month last year, which was recorded at 6.6 percent. The current inflation rate (2.9%) of the province is lower compared to the headline inflation of the Philippines and Davao Region, which stood at 3.9 percent and 5.3 percent, respectively (Table A). The average inflation of Davao del Norte for the year 2023 stood at 3.7 percent (Table B). 

Table B. Year-on-Year Inflation Rates in Davao del Norte: All Items in Percent January 2020 – December 2023

2. Contribution to the Inflation 

Table C showed that the December 2023 inflation of Davao del Norte is mostly contributed by the indices of food and non-alcoholic beverages (7.1%); transport (3.8%); and alcoholic beverages and tobacco (12.3%).

Table C. Major Contributor to the Inflation in Davao del Norte: All income Households in Percent (2018=100)

3. Share to the Trend of Inflation 

Table D. Share to the Downtrend of Inflation in Davao del Norte: All income Households in Percent (2018=100)

The decrement in the inflation rate of Davao del Norte can be observed with its downward trend from 3.2 percent in November 2023 to 2.9 percent in December 2023. This decrease is mainly contributed by the downward movement of the index for housing, water, electricity, gas and other fuels from a rate of -7.3 percent in November 2023 to -8.8 percent in December 2023. This is followed by the indices of personal care, and miscellaneous goods and services (from 5.1% to 4.9%), and health (from 1.8% to 1.6%). (Table D). Despite the decrease of inflation rate in the province, an upward trend in December 2023 compared to their corresponding rates in November 2023 were observed in Table D for the following commodities: 

 Food and non-alcoholic beverages (from 7.0% to 7.1%); 

 Alcoholic beverages and tobacco (from 12.0% to 12.3%); 

 Clothing and footwear (from 5.4% to 5.5%); and 

 Transport (from 3.3% to 3.8%) 

It can also be observed that the commodities for furnishings, household equipment and routine household maintenance; education services; restaurants and accommodation services; and financial services has shown no sign of increase nor decrease in inflation rate in comparison to their corresponding rates in the last month. The inflation of the index for food steadied at 7.4 from November to December 2023. The trend of the food inflation was mostly attributed by the movement of the inflation of the indices of rice; fish and other seafood; and fruits and nuts (Table E.)

Table E. Share to the Trend of Food Inflation in Davao del Norte: All income Households in Percent (2018=100)

4. Purchasing Power of Peso 

The Purchasing Power of Peso (PPP) measures the current value of the peso in reference to its value in the base year. It has an inverse relationship with the Cosumer Price Index (CPI) which means that if the CPI increases, the PPP decreases. 

Figure 2 showed that the PPP for the province of Davao del Norte steadied and was recorded at 0.83 from November to December 2023. This suggests that Php100.00 in 2018 is currently valued at PhP83.00.

PEPITO D. AMOYEN 
Chief Statistical Specialist