The headline inflation of prices in Davao de Oro Province decreased to 8.1 percent in April 2023 from 11.5 percent in March 2023 or a decrease of 3.4 percentage pointS. Inflation of prices in April 2022 was lower at 7.6 percent. The average inflation for the year 2023 stood at 11.0 percent. (Table 1 and Figure 1)

The decline in the province’s inflation was mainly brought about by the downtrend annual rate in the index of Food and non-alcoholic beverages which declined to 8.4 percent from 13.3 percent in March 2023; Housing, water, electricity, gas and other fuels at 8.3 percent from 11.5 percent in March 2023; and Personal care, and miscellaneous goods and services at 11.2 percent from 13.1 percent in March 2023. (Table 2)

Table 2. Consumer Price Index by Subgroup, Month-on-Month and Year-on-Year Percent Changes in Davao de Oro (2018=100)

Also contributing to the downtrend in the overall inflation during the period were the annual price changes in the indices of the following commodity groups as compared with their previous month’s inflation rates:

a.   Clothing and footwear, 11.4 percent;

b.   Furnishings, household equipment and routine household maintenance, 12.7 percent;

c.    Health, 5.5 percent;

d.   Transport, 3.8 percent;

e.   Information and communication, 4.1 percent;

f.     Recreation, sport and culture, 15.8; and

g.   Restaurants and accommodation services, 5.4 percent.

Alcoholic beverages and tobacco showed an uptrend rate in the overall inflation from 11.0 percent in March 2023 to 12.2 percent in April 2023. Education services and Financial services remain no price changes since July 2020 and April 2022.

Food and non-alcoholic beverages group shared the highest contribution for the month’s inflation rate at 4.2 points (52.4 percent). As to the percent share to the month’s downtrend rate of the said commodity group, Cereals posted the highest percent share at 31.2 percent, followed by Fish, live, fresh, chilled or frozen at 20.0 percent, and Fruit-bearing vegetables, fresh or chilled at 15.9 percent. (Table 3) 

The second highest contributor for April 2023 inflation rate is the Housing, water, electricity, gas, and other fuels commodity group with a contribution of 1.5 points (18.1 percent) among all items. Under this group, Electricity posted the highest percent share to the inflation downtrend at 58.3 percent, followed by Actual rentals paid by tenants for main residence at 31.1 percent, and Liquefied hydrocarbons with a percent share of 7.6 percent. (Table 4)

Personal care, and miscellaneous goods and services commodity group ranked third with a contribution of 0.5 point (6.1 percent). Under this group, Other appliances, articles and products for personal care posted the highest percent share to the inflation downtrend at 82.4 percent, followed by Personal grooming treatments with a percent share of 11.5 percent, and Hairdressing at 5.2 percent. (Table 5)

Below is the inflation rates trend of Davao de Oro Province since the rebasing of market basket with year 2018 as the base year. (Table 6)

Consequently, the Purchasing Power of Peso (PPP) based on year 2018 in Davao de Oro Province is equivalent to 0.80 in April 2023. (Figure 2)

Technical Notes:

Price – is the amount or value paid in exchange for the commodity or a service rendered.

Retail/Consumer Price – refers to the price at which a commodity is sold in small quantities for consumption.

Market Basket– a term used to refer to a sample of goods and services that are commonly purchased and bought by an average Filipino household.

Consumer Price Index (CPI) – it is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by an average Filipino household. It shows how much on the average, prices of goods and services have increased or decreased from a particular reference period known as base year.

Inflation Rate – is an indicator derived from the CPI. It refers to 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.

Weight– a value attached to a commodity or group of commodities depending on the magnitude of its contribution to the index.

Base Period – a reference date at which the index is equal to 100. Base year is 2018.

Index Methodology– a Laspeyre’s formula: fixed base year and weights.

Purchasing Power of the Peso (PPP) – the measure of how much the peso in the base period is worth in the current period.

Percentage Change– is a simple mathematical concept that represents the degree of change over time. It is used for many purposes in finance, often to represent the price change of a security.

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).