DAVAO DEL SUR

The headline inflation in Davao del Sur decreased by 1.9 percentage points with 2.7 percent in July 2023, from 4.6 percent in June 2023. This inflation rate is 6.9 percentage points lower than the inflation rate in July 2022 posted at 9.6 percent. The average inflation for the year’s first seven months stood at 6.4 percent. (Table A and Figure 1).

The decrease in Davao del Sur’s inflation rate was mainly brought about by the decrease in the Food and Non-Alcoholic Beverages index to 5.0 percent from 7.0 percent in the previous month. It shared 46.7 percent in the inflation trend which is the highest. Next to that is the decrease in the inflation rate of Housing, Water, Electricity, Gas, and Other Fuels to 3.4 percent from 7.9 percent in the previous month. It contributed 45.5 percent, the second-highest share in the inflation trend. Furthermore, the inflation rate of Transport declined to negative 13.6 percent from negative 11.9 percent in the previous month. It contributed the third highest share in the inflation trend with 6.5 percent. Also, the annual upticks of Alcoholic Beverages and Tobacco decreased to 12.3 percent from 13.1 percent in the previous month, this shared 1.1 percent in the inflation trend. Other than that, the inflation rate of Health also declined to 1.2 percent from 1.4 percent, which contributed 0.2 percent to the inflation trend.

Meanwhile, the annual upticks of the following indices remained the same:

The inflation rate of the Food index declined to 5.1 percent from 7.1 in June 2023. Moreover, the inflation rate of the food index Corn under the food group cereals decreased to 35.3 percent from 47.6 percent in the previous month. This contributed 26.3 percent, which is the highest share of the food group’s inflation trend. Following that, Fish and Other Seafood decreased to negative 10.2 percent from negative 6.0 percent in the previous month, it contributed 25.1 percent to the food group’s inflation trend which is the second-highest share. Next to that, the Meat and Other Parts of Slaughtered Land Animals’ inflation rate also decreased posted at 3.9 percent from 8.6 percent in the previous month, it contributed 24.2 percent to the food group’s inflation trend which is the third-highest share. Moreover, the inflation rate of Sugar Confectionery and Desserts declined to 10.4 percent from 19.5 percent in the previous month, it shared 7.8 percent of the food group’s inflation trend which is the fourth-highest share. The same goes for Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals whose inflation rate declined to 8.0 percent from 11.7 percent in the previous month, it contributed 7.4 percent to the food group’s inflation trend. In addition, the inflation rate of Oils and Fats decreased to negative 3.6 percent from 9.4 percent. Also, the Fruits and Nuts’ inflation rate decreased to 6.8 percent from 9.5 percent.

On the other hand, the inflation rate of the following food groups increased:

Meanwhile, the inflation rate of Milk, Other Dairy Products and Eggs remained the same posted at 7.6 percent.

In addition, the July 2023 Purchasing Power of Peso (PPP) in Davao del Sur is 0.82, which is the same as the previous month’s PPP. In July 2022, the PPP is at 0.84. (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 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.