Skip to main content
Release Date :
Reference Number :
SR-231182-028

The headline inflation of prices in Davao de Oro Province decreased to 3.1 percent in July 2023 from 5.5 percent in June 2023 or a decrease of 2.4 points. Inflation of prices in July 2022 was higher at 12.0 percent. The average inflation for the year 2023 stood at 8.5 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 4.8 percent from 7.0 percent in June 2023; Personal care, and miscellaneous goods and services at 7.3 percent from 8.4 percent in June 2023; and Furnishings, household equipment and routine household maintenance at 9.6 percent from 11.0 percent in June 2023. (Table 2)

 

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, 7.4 percent;

b.   Housing, water, electricity, gas and other fuels, 1.5 percent;

c.    Health, 4.0 percent;

d.   Transport, -9.8 percent;

e.   Information and communication, 1.8 percent; and

f.     Recreation, sport and culture, 15.2 percent.

Alcoholic beverages and tobacco showed an uptrend rate in the overall inflation from 9.7 percent in June 2023 to 10.0 percent in July 2023. Restaurants and accommodation services commodity groups posted the same inflation rate at 1.0 percent, while 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 2.3 points (75.0 percent). As to the percent share to the month’s downtrend rate of the said commodity group, Fish, live, fresh, chilled or frozen posted the highest percent share at 31.4 percent followed by Cereals at 13.9 percent, and Cane and beet sugar at 11.4 percent. (Table 3) 

 

The second highest contributor for July 2023 inflation rate is the Personal care, and miscellaneous goods and services commodity group with a contribution of 0.3 points (10.0 percent) among all items. Under this group, Other appliances, articles and products for personal care posted the highest percent share to the inflation downtrend at 77.5 percent, followed by Personal grooming treatments with a percent share of 17.5 percent, and Hairdressing at 5.0 percent. (Table 4) 

Furnishings, household equipment and routine household maintenance commodity group ranked third with a contribution of 0.3 points (9.6 percent). Under this group, Other non-durable household goods posted the highest percent share to the inflation downtrend at 43.1 percent, followed by Domestic services by paid staff at 27.8 percent, and Household cleaning and maintenance products with a percent share of 9.0 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 July 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).

PSA Davao de Oro Conducts Provincial Inflation Report for February 2024

The Philippine Statistics Authority (PSA) Davao de Oro, spearheaded by Chief Statistical Specialist (CSS) Abraham Enrico E. Gulay, Jr., has successfully conducted its first Online Report on Davao de…

SUMMARY INFLATION REPORT OF DAVAO DE ORO PROVINCE Consumer Price Index, (2018 = 100) FEBRUARY 2024

The headline inflation of prices in Davao de Oro increased to 4.9 percent in February 2024 from 4.1 percent in January 2024, or an increase of 0.8 percentage point. Inflation of prices in February…

SUMMARY INFLATION REPORT OF DAVAO DE ORO PROVINCE Consumer Price Index, (2018 = 100) JULY 2023

The headline inflation of prices in Davao de Oro Province decreased to 3.1 percent in July 2023 from 5.5 percent in June 2023 or a decrease of 2.4 points. Inflation of prices in July 2022 was higher…