The headline inflation of prices in Davao de Oro decelerated to 1.6 percent in November 2024 from 2.4 percent in October 2024. This brings the provincial average inflation rate from January 2024 to November 2024 at 3.8 percent. The inflation rate in November 2023 was observed at 5.1 percent. (Table 1 and Figure 1)

The downtrend of provincial inflation in November 2024 was mainly driven by the lower annual growth rate in the indices of the following commodity groups: (a) Food and non-alcoholic beverages at 2.0 percent from 5.0 percent in October 2024; (b) Furnishing, household equipment and routine household maintenance at 3.3 percent from 3.7 percent in October 2024 and; (c) Clothing and footwear at 1.8 percent from 2.1 percent in October 2024.

The percentage share of the above-mentioned commodity groups in the overall inflation in November 2024 are as follows: (a) Food and non-alcoholic beverages with 98.1 percent; (b) Furnishing, household equipment and routine household maintenance with 0.8 percent and; (c) Clothing and footwear with 0.7 percent.

The following commodity groups also posted a slower annual growth in their respective inflation for the month of November 2024:
a. Alcoholic beverages and tobacco at 1.4 percent and;
b. Recreation, sport and culture at 1.5 percent;

On the other hand, the following commodity groups posted a faster annual increment in their respective inflation rate for the month of November 2024:
a. Health at 2.6 percent;
b. Information and Communication at 0.1 percent; 
c. Restaurants and accommodation services at 11.4 percent; and
d. Personal care, and miscellaneous goods and services at 1.8 percent.

In addition, the following commodity groups posted slower annual decline in their respective inflation rate from year-on-year percentage annual drop:
a. Housing, water, electricity, gas and other fuels at - 0.3 percent from - 2.1 percent; and
b. Transport at - 2.9 percent from - 4.7 percent.

Meanwhile, the indices of the following commodity groups remained at their respective previous month’s annual rates: 
a. Education services at 0.7 percent and;
b. Financial Services with 0 percent.

Food and non-alcoholic beverages commodity group had the highest contribution for the month’s inflation rate with 65.5 percent share (1.1 points). As to the share to the month’s inflation rate of the said commodity group, Fish and other seafood posted the highest percent share of 31.1 percentage (0.50 points) and having a 6.0 percent inflation rate. This was followed by milk, other dairy products and eggs with a 14.7 percent share (0.24 points) and 6.4 percent inflation rate. Fruits and nuts had the third highest percentage share of 12.8 percent (0.21 points) with 13.7 percent inflation rate. (Table 3)

The second highest contributor for the November 2024 inflation rate is the Restaurant and accommodation services commodity with 30.5 percent share (0.49 points) among all items. Under this group, Restaurants, café and the like posted the highest share of 30.5 percent (0.49 points) with 11.4 percent inflation rate. (Table 4)

Furnishings, household equipment and routine household maintenance commodity group ranked third with 6.9 percent contribution (0.11 points) for the November 2024 inflation. As to the share to the month’s inflation rate of the said commodity group, Non-durable household goods posted the highest percent share of 6.6 percent (0.10 points) with 5.4 percent inflation rate. This was followed by major household appliances, whether electric or not with 0.3 percent share and 0.9 percent inflation rate. Finally, glassware, tableware and household utensils had the third highest percentage share with 0.1 percent share and 3.2 percent inflation rate. (Table 5)

Below is the summary of inflation rates in Davao de Oro Province since the rebasing of the market basket with 2018 as the base year.

Consequently, the Purchasing Power of Peso (PPP) with base year 2018 in Davao de Oro is equivalent to 0.77 in November 2024. (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).