Inflation rate in Davao del Norte is reported at 6.0 percent (2018=100) in March 2023 
 

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index Philippine Statistics Authority

1. Inflation in Davao del Norte

The headline inflation in Davao del Norte increased by 2.0 percentage points in March 2023 (6.0%) compared to its inflation rate in the same month last year, which was recorded at 4.0 percent. The current inflation rate (6.0%) of the province is lower compared to the headline inflation of the Philippines and Davao Region, which stood at 7.6 percent and 9.0 percent, respectively (Table A).

The average inflation of Davao del Norte for the year 2023 stood at 6.5 percent (Table B).

2.  Contribution to the Inflation

Table C showed that the February 2023 inflation of Davao del Norte is mostly contributed by the indices of food and non-alcoholic beverages (9.8%); housing, water, electricity, gas and other fuels (2.4%); and transport (3.0%).

3.   Share to the Trend of Inflation

The decrement in the inflation rate of Davao del Norte can be observed with its downward trend from 6.5 percent in February 2023 to 6.0 percent in March 2023. This decrease is mainly contributed by the indices for housing, water, electricity, gas and other fuels, from a rate of 4.9 percent in February 2023 to 2.4 percent in March 2023. This is followed by the indices of transport (from 6.2% to 3.0%), and personal care, and miscellaneous goods and services (from 3.7% to 3.3%). (Table D).

Despite the decrease of inflation rate in the province, an upward trend in March 2023 compared to their corresponding rates in February 2023 were observed in Table D for the following commodities:

• Food and non-alcoholic beverages (from 9.0% to 9.8%)
• Alcoholic beverages and tobacco (from 4.3% to 5.0%)
• Furnishings, household equipment and routine household maintenance (from 2.6% to 3.1%)
• Recreation, sport and culture (from 4.9% to 5.0)

It can also be observed that the commodities for information and communication; 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 last month.

The index for food has also shown an upward trend from 9.2 percent in February 2023 to 10.1 percent in March 2023. The uptrend of the food inflation was mostly attributed by the higher annual increase in the price indices of fish and other seafood; rice; and milk, other dairy products and eggs (Table E.)

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 at 0.85 since February 2023. This suggests that Php100.00 in 2018 is currently valued at PhP85.00.

Approved for Release:

PEPITO D. AMOYEN

Chief Statistical Specialist