DAVAO DEL SUR

The headline inflation in Davao del Sur increased by 1.6 percentage points having 6.8 in May 2022, from 5.2 percent in April 2022. The inflation in May 2021 was posted at 3.7 percent, lower by 3.1 percentage points than the recent inflation rate. The average inflation for the first four months of the year stood at 5.7 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 8.6 percent; transport, 23.8 percent; health, 4.5 percent; alcoholic beverages and tobacco, 5.4 percent; clothing and footwear, 1.2 percent; and recreation, sport and culture, 1.3 percent. On the other hand, there was a decrease in the inflation of housing, water, electricity, gas and other fuels having 3.4 percent which is 0.2 percent lower as compared to the previous month’s inflation rate.

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

1. Furnishings, Household Equipment and Routine Household Maintenance, 0.7 percent;
2. Information and Communication, 1.0 percent;
3. Education services, 0.0 percent;
4. Restaurants and Accommodation Services, 1.3 percent.
5. Financial Services, 0.0 percent; and
6. Personal Care, and Miscellaneous Goods and Services, 2.1 percent.

For the food index, it increased further by 3.4 percent having 9.0 percent in May 2022, from 5.6 percent in the previous month. In May 2021, the food index is 3.6 percent which is 5.4 percent lower compared to the recent food index. (Table 9)

The annual growth rate of fish and other seafood increased to 6.7 percent from a negative 0.5 percent in the previous month, this shares 39.5 percent of the food group’s inflation trend. Moreover, the vegetables, tubers, plantains, cooking bananas and pulses index also increased to 14.4 percent from 3.1 percent of the previous month, this contributes the second highest percentage next to fish and seafood in the inflation trend of food groups having 24.9 percent share. Also, the corn index increased having 26.4 percent from 17.5 percent, which contributes 17.5 percent to the uptrend inflation of food groups which is the third highest share.

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

1. Fruits and nuts, 7.6 percent;
2. Meat and other parts of slaughtered land animals, 9.6 percent;
3. Flour, bread and other bakery products, pasta products, and other cereals, 5.2 percent;
4. Rice, 8.6 percent;
5. Oil and fats, 17.2 percent;
6. Sugar, confectionery, and desserts, 9.9 percent; and
7. Ready-made food and other food products n.e.c., 4.0 percent.

On the other hand, among the food indices, only the index of milk, other dairy products and eggs decreased by 1.0 percent having 5.0 percent in May 2022, from 4.0 percent in the previous month.

In addition, the May 2022 Purchasing Power of Peso (PPP) in Davao del Sur is 0.87, it is 0.01 lower than the previous month which is 0.88. In May 2021, PPP is at 0.93. (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.

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