CITY OF DAVAO

In May 2023, the headline inflation rate in the City of Davao decreased further to 7.7 percent, 1.1 percentage points lower than the previous month's rate of 8.8 percent. The average inflation rate from January to May 2023 was 9.4 percent. (Table A and Figure 1).

Among the thirteen commodity groups, Food and Non-Alcoholic Beverages had the largest share to inflation with inflation rate of 5.0 percent in May 2023 , down from 6.7 percent in April 2023. It was followed by Transport at 3.1 percent, down from 6.9 percent in the previous month. The third commodity with the highest share was Personal Care, and Miscellaneous Goods and Services at 9.5 percent, down from 10.5 percent in the previous month. Likewise, relative to their annual rates in  2023, lower year-on-year inflation rates were also observed in the following commodity groups:

1. Restaurants and Accommodation Services, 13.2 percent;
2. Furnishing, Household Equipment and Routine Household Maintenance, 8.2 percent;
3. Health, 5.6 percent;
4. Clothing and Footwear, 9.5 percent;

On the contrary, higher increments were observed in the indices of (a) Alcoholic Beverages and Tobacco at 25.3 percent and (b) Recreation, Sport and Culture at 6.5 percent. The inflation rate of the rest of the commodity groups, on the other hand, remained equal.

Meanwhile, in May 2023, majority of the food groups exhibited lower inflation rates which resulted to slower food inflation in general. From 6.0 percent in the previous month, food inflation decreased to 4.3 percent in May 2023. The decrease was mainly due to lower (a) Fish and other Seafood index at -15.6 percent from -9.0 percent in the previous month; (b) Fruits and Nuts at 4.8 percent from 15.5 percent in the previous month; and (c) Vegetables, Tubers, Plantains, Cooking Bananas and Pulses at 8.3 percent, down from 14.1 percent in April 2023.  Furthermore, lower rates were also observed in the following food groups:

1. Oils and Fats, 17.6 percent;
2. Sugar, Confectionery, and Desserts, 31.6 percent;
3. Corn, 61.4 percent;
4. Ready-made Food and Other Food Products N.E.C.

The rest of the food groups, despite the decreasing food inflation in the city, have exhibited higher increments, specifically in the index of Meat and other Parts of Slaughtered Land Animals at 10.8 percent;  Milk, other Dairy Products and Eggs at 12.9 percent; Rice at 1.5 percent; and Flour, Bread and Other Bakery Products, Pasta Products, and other Cereals at 14.0 percent.

In addition, the May 2023 Purchasing Power of Peso (PPP) in Davao City remained equal at 0.81. PPP in May 2022 was at 0.87. (Figure 2)