DAVAO DEL SUR

The headline inflation in Davao del Sur increased by 2.2 percentage points having 9.6 in July 2022, from 7.4 percent in June 2022. The inflation in July 2021 was posted at 4.6 percent, lower by 5.0 percentage points than the recent inflation rate. The average inflation for the year’s first six months stood at 6.5 percent (Table A and Figure 1).

In comparison to the previous month’s inflation rate, there is an increase in Davao del Sur’s inflation rate which was mainly brought about by the increase in the index for food and non-alcoholic beverages at 12.0 percent; housing, water, electricity, gas, and other fuels, 7.8 percent; alcoholic beverages and tobacco, 9.6 percent; and transport, 26 percent.

Meanwhile, the annual upticks retained in the indices of the following commodity groups:

a. Clothing and footwear, 1.1 percent;

b. Furnishings, Household Equipment, and Routine Household Maintenance, 0.4 percent;

c. Health, 4.7; d. Information and Communication, 0.0 percent;

e. Education Services, 0.0 percent;

f. Restaurants and Accommodation Services, 1.3 percent;

g. Financial Services, 0.0 percent; and

h. Personal Care, and Miscellaneous Goods and Services, 1.2 percent;

On the other hand, there is a decrease in the inflation rate of Recreation, Sport and Culture having 1.8 percent from 1.9 of the previous month. For the food index, it increased further by 2.5 percent having 12.7 percent in July 2022, from 10.2 percent in the previous month. In July 2021, the food index is 6.4 percent which is 6.3 percent lower compared to the recent food index. (Table 9).

The inflation rate of fish and other seafood increased further to 17.7 percent which is 7.8 percentage points higher than the previous month, this shares 42.0 percent which is the highest contribution in the food group’s inflation trend. Furthermore, the annual growth rate of corn under the commodity group cereals increased to 46.8 percent from 38.2 percent in the previous month, this shares 16.6 percent of the food group’s inflation trend which is the second highest contribution. In addition, the inflation rate of meat and other parts of slaughtered land animals increased to 10.9 percent from 8.1 percent in the previous month, this shares 13.0 percent of the food group’s inflation trend which is the third highest contribution.

Moreover, the following food groups also exhibited higher annual increments during Page 3 of 5 the month compared to the previous month:

a. Flour, bread and other bakery products, pasta products, and other cereals, 11.5 percent;

b. Oil and fats, 35.7 percent;

c. Fruits and nuts, 21.0 percent;

d. Sugar, confectionery, and desserts, 20.7 percent; and

e. Ready-made food and other food products n.e.c., 5.0 percent

On the other hand, the index of rice under the food commodity cereals decreased by 2.3 percent having 4.0 percent in July 2022, from 6.3 percent in the previous month. Moreover, the index of milk, other dairy products, and eggs also decreased having 3.9 percent in July 2022, from 4.0 percent in the previous month. Also, the index of vegetables, tubers, plantains, cooking bananas and pulses decreased having 7.8 percent in July 2022, from 16.5 percent in the previous month. Meanwhile, the annual growth rate of the food group cereals consisting of rice and corn, remained the same having 12.9 percent.

In addition, the July 2022 Purchasing Power of Peso (PPP) in Davao del Sur is 0.84, which is 0.02 lower than the previous month at 0.86. In July 2021, PPP is at 0.92. (Figure 2).

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 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:

RANDOLPH ANTHONY B. GALES
Chief Statistical Specialist
Davao del Sur Provincial Statistical Office