The headline inflation of prices in Davao de Oro decreased to 1.5 percent in September 2024 from 4.8 percent in August 2024, or a decrease of 3.3 percentage points. Inflation of prices in September 2023 was higher at 6.1 percent. The average inflation for the year 2024 stood at 4.1percent. (Table 1 and Figure 1)

The decrease in the province’s inflation was mainly brought about by the downtrend annual rate in the index of Food and non-alcoholic beverages which decreased to 2.8 percent from 6.1 percent in August 2024; Housing, water, electricity, gas and other fuels which decreased to -1.0 percent from 6.8 percent in August 2024 and; Transport which decreased to -5.6 percent from -2.0 percent in August 2024.

The percentage share of the above-mentioned commodity groups to the downtrend of the September 2024 inflation are as follows; (a) Food and nonalcoholic beverages with 49.1 percent; (b) Housing, water, electricity, gas and other fuels with 40.6 percent and; (c) Transport with 8.8 percent.

The following commodity groups posted a downtrend in the overall inflation and their corresponding inflation rate for the month of September 2024 are as follows:

a. Food and non-alcoholic beverages with 2.8 percent;
b. Clothing and footwear with 3.0 percent;
c. Housing, water, electricity, gas and other fuels with -1.0 percent
d. Health with 1.2 percent; 
e. Transport with -5.6 percent;
f. Recreation, sport and culture with 2.2 percent and;
g. Personal care, and miscellaneous goods and services with 1.0 percent.

On the other hand, the following commodity groups posted an uptrend in the overall inflation and their corresponding inflation rate for the month of September 2024 are as follows:

a. Alcoholic beverages and tobacco with 1.9 percent; and
b. Furnishings, household equipment and routine household maintenance with 4.0 percent.

Meanwhile, the following commodity groups retained their inflation rate from August 2024 to September 2024:

a. Information and communication with -0.3 percent;
b. Education services with 0.7 percent;
c. Restaurant and accommodation services with 8.2 percent; and
d. Financial Services with 0 percent.

Food and non-alcoholic beverages group had the highest contribution for the month’s inflation rate with 96.2 percent share (1.4 points). As to the share to the month’s inflation rate of the said commodity group, Vegetables, tubers, plantains, cooking banana and pulses posted the highest percent share having a 7.9 percent inflation rate and followed by Milk, other dairy products and eggs with 8.3 percent inflation rate. (Table 3)

The second highest contributor for the September 2024 inflation rate is the Restaurant and accommodation services commodity group having a 23.0 percent share (0.34 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 8.8 percent contribution (0.13 points) for the September 2024 inflation. (Table 5)

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

Consequently, the Purchasing Power of Peso (PPP) based on year 2018 in Davao de Oro is equivalent to 0.76 in September 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 lndex (CPl) - 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. lt shows how much on the average, prices of goods and services have increased or decreased from a particular reference period known as base year.

lnflation Rate - is an indicator derived from the CPl. lt refers to the annual rate of change or the year-on-year change of the CPI expressed in percent. lnflation 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 atwhich the index is equal to 100. Base year is 2018.

lndex 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. lt is used for many purposes in finance, often to represent the price change of a security.

Headline lnflation - measures changes in the cost of living based on movements in the prices of a specified basket of major commodities. lt refers to the annual rate of change or the year-on-year change in the Consumer Price lndex (CPl).