DAVAO DEL SUR

The headline inflation in Davao del Sur decreased by 0.4 percentage points with 4.6 percent in June 2023, from 5.0 percent in May 2023. This inflation rate is 2.8 percentage points lower than the inflation rate in June 2022 posted at 7.4 percent. The average inflation for the year’s first six months stood at 7.1 percent. (Table A and Figure 1).

The decrease in Davao del Sur’s inflation rate was mainly brought about by the decrease in the Transport index to negative 11.9 percent from 9.7 percent in the previous month. It shares 39.0 percent which is the highest share in the inflation trend. Next to that is the decrease in the inflation rate of Housing, Water, Electricity, Gas, and Other Fuels to 7.9 percent from negative 8.7 percent in the previous month. It contributes 37.7 percent, the second-highest share in the inflation trend. Furthermore, the inflation rate of Alcoholic Beverages and Tobacco declined to 13.1 percent from 15.6 percent in the previous month. It contributes the third highest share in the inflation trend with 16.8 percent. Also, the annual upticks of Health decreased to 1.4 percent from 2.3 percent in the previous month, this shares 5.1 percent in the inflation trend. Other than that, the inflation rate of Recreation, Sport and Culture declined to 3.2 percent from 4.1 percent, which contributes 1.3 percent to the inflation trend.

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

1. Clothing and Footwear, 1.0 percent;
2. Information and Communication, 1.8 percent;
3. Education Services, 0.3 percent;
4. Restaurants and Accommodation Services, 5.7 percent; and
5. Financial Services; 0.0 percent.

On the other hand, the inflation rate of Food and Non-Alcoholic Beverages increased to 7.0 percent from 6.5 percent in the previous month. Also, Furnishings, Household Equipment, and Routine Household Maintenance increased to 3.8 percent which is 0.1 percentage points higher than the previous month. The same goes for the inflation rate of the index Personal Care and Miscellaneous Goods and Services which rose to 1.5 percent from 1.3 percent.

The inflation rate of the Food index increased to 7.1 percent from 6.7 in May 2023. Moreover, the inflation rate of the food index Rice under the food group cereals increased to 3.5 percent from 0.8 percent in the previous month. This contributed 45.5 percent, which is the highest share of the food group’s inflation trend. Following that, Meat and Other Parts of Slaughtered Land Animals increased to 8.6 percent from 6.5 percent in the previous month, it contributed 23.3 percent to the food group’s inflation trend which is the second-highest share. Next to that, the Fruits and Nuts' inflation rate also increased posted at 9.5 percent from 0.5 percent in the previous month, it contributed 19.2 percent to the food group’s inflation trend which is the third-highest share. Furthermore, the inflation rate of the food index Vegetables, tubers, plantains, cooking bananas and pulses rose to 6.7 percent from 4.6 percent in the previous month, it shared 10.9 percent of the food group’s inflation trend which is the fourth-highest share. The same goes for Ready-made Food and Other Food Products n.e.c whose inflation rate rose to 4.5 percent from 4.1 percent in the previous month, it contributed 1.0 percent to the food group’s inflation trend.

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

1. Corn, 47.6 percent;
2. Flour, Bread And Other Bakery Products, Pasta Products, And Other Cereals, 11.7 percent;
3. Fish and Other Seafood, negative 6.0 percent;
4. Milk, Other Dairy Products, and Eggs, 7.6 percent;
5. Oils and Fats, 9.4 percent; and
6. Sugar, Confectionery and Desserts,19.5 percent.

In addition, the June 2023 Purchasing Power of Peso (PPP) in Davao del Sur is 0.82, which is the same as the previous month’s PPP. In May 2022, the PPP is at 0.87. (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.