The headline inflation of prices in Davao de Oro accelerated to 2.4 percent in October 2024 from 1.5 percent in September 2024. This brings the provincial average inflation rate from January 2024 to October 2024 at 4.0 percent. The inflation rate in October 2023 was observed at 4.4 percent. (Table 1 and Figure 1)

The uptrend of provincial inflation in October 2024 was mainly driven by the faster annual increment in the index of the following commodity groups: (a) Food and non-alcoholic beverages at 5.0 percent from 2.8 percent in September 2024; (b) Transport at -4.7 percent from -5.6 percent in September 2024 and; (c) Personal care, and miscellaneous goods and services at 1.7 percent from 1.0 percent in September 2024.

The percentage share of the above-mentioned commodity groups in the overall inflation in October 2024 are as follows: (a) Food and non-alcoholic beverages with 91.0 percent; (b) Transport with 6.1 percent and; (c) Personal care, and miscellaneous goods and services with 2.5 percent.

The following commodity groups posted a faster year-on-year increment in the overall inflation and their corresponding inflation rate for the month of October 2024 are as follows:
a. Food and non-alcoholic beverages at 5.0 percent;
b. Transport at -4.7 percent;
c. Information and Communication at -0.1 percent; and
d. Personal care, and miscellaneous good and services at 1.7 percent.

On the contrary, the following commodity groups posted a slower annual increase in inflation and their corresponding inflation rate for the month of October 2024 are as follows:
a. Alcoholic beverages and tobacco at 1.5 percent;
b. Clothing and footwear at 2.1 percent;
c. Housing, water, electricity, gas and other fuels at -2.1 percent;
d. Furnishings, household equipment and routine household maintenance at 3.7 percent;
e. Health at 0.8 percent; and
f. Recreation, sport and culture at 2.0 percent.

Meanwhile, the inflation rate of the following commodity groups from September 2024 to October 2024 remained unchanged at their respective percentages, as follows: 
a. Education services with 0.7 percent;
b. Restaurant and accommodation services at 8.2 percent; and
c. Financial Services with 0 percent.

Food and non-alcoholic beverages group had the highest contribution for the month’s inflation rate with 103.6 percent share (2.5 points). As to the share to the month’s inflation rate of the said commodity group, Cereals and cereal products posted the highest percent share having a 6.0 percent inflation rate followed by Fish and other seafood with 7.7 percent inflation rate, and Milk, other dairy products and eggs with 8.5 percent inflation rate. (Table 3)

The second highest contributor for the October 2024 inflation rate is the Restaurant and accommodation services commodity group having a 13.9 percent share (0.33 points) among all items. Under this group, Restaurants, café and the like posted the highest share with 8.2 percent inflation rate. (Table 4)

Furnishings, household equipment and routine household maintenance commodity group ranked third with 4.9 percent contribution (0.12 points) for the October 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 having 5.6 percent inflation rate, followed by Furniture, furnishings and loose carpets with 2.4 percent inflation rate and, Major household appliances, whether electric or not with 0.9 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 October 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).