CITY OF DAVAO

In October 2022, the annual inflation rate of Davao City, for the first time since January 2019, breached the two-digit inflation with a rate of 10.4 percent. The current month's rate was higher by 0.5 percentage points compared to the annual uptick in September 2022 at 9.9. Also, the rate in October 2022 was higher than the rate of the same month in 2021 at only 2.8 percent (Table A and Figure 1).

The top three major sources of the upward trend in October 2022 are commodity groups Food and Non-Alcoholic Beverages (13.9 percent) having the largest share at 74.8 percent followed by Alcoholic Beverages and Tobacco (12.5 percent) with the second highest share of also 12.5 percent and Clothing and Footwear (6.0 percent) with a share to inflation trend of 3.9 percent. Meanwhile, aside from the three major sources, higher rate was also recorded in the following commodity groups:

1. Personal Care, and Miscellaneous Goods and Services, 7.2 percent;
2. Furnishings, Household Equipment and Routine Household Maintenance, 8.3 percent;
3. Transport, 18.4 percent;
4. Health, 3.6 percent; and
5. Recreation, Sport and Culture, 4.3 percent

While majority of the commodity groups had higher rates in October 2022, Information and Communication (0.8 percent); Education Services (9.8 percent), Restaurants and Accommodation Services (8.1 percent); and Financial Services (0.0 percent) remained the same. On the other hand, only Housing, Water, Electricity, Gas and Other Fuels decreased with 5.6 percent inflation rate in October 2022 lower by 0.2 from 5.8 percent in the previous month.

Meanwhile, food inflation in Davao City increased from 13.2 in September to 14.2 percent in October 2022. It was mainly due to the higher increments in Vegetables, tubers, plantains, cooking bananas and pulses (24.8 percent) with 49.3 percent share of the food inflation, Milk, other dairy products, and eggs (12.5 percent) with 21.0 percent share of the food inflation, and Corn (50.1 percent) with a share to the food inflation of 10.5 percent. Meanwhile, the following food groups also exhibited higher inflation rates:

1. Sugar, Confectionery and Desserts 42.1 percent;
2. Milk, Other Dairy Products and Eggs 7.2 percent;
3. Flour, Bread And Other Bakery Products, Pasta Products, And Other Cereals, 8.8 percent;
4. Ready-made Food and Other Food Products n.e.c., 10.5 percent;
5. Fruit and Nuts, 12.7 percent

The rest of the food groups, despite the rising food inflation in the City of Davao, decreased in October 2022, specifically Meat and Other Parts of Slaughtered Land Animals (11.2 percent), Fish and Other Seafood (19.1 percent) and Oils and Fats (25.7 percent) and Rice (7.6 percent).

In addition, the October 2022 Purchasing Power of Peso (PPP) in Davao City remained the same 0.84. PPP in October 2021 was at 0.93. (Figure 2).