The headline inflation of prices in Davao de Oro for the bottom 30% income households increased to 4.1 percent in May 2024 from 3.5 percent in April 2024, or an increase of 0.6 percentage point. Inflation of prices in May 2023 was higher at 6.1 percent. The average inflation for the year 2024 stood at 3.5 percent. (Table 1 and Figure 1)

The increase in the province’s inflation was mainly brought about by the uptrend annual rate in the index of Housing, Water, Electricity, Gas and Other Fuels which increased to -13.1 percent from -15.1 percent in April 2024; Food and non-alcoholic beverages at 9.6 percent from 9.2 percent in April 2024; and Transport at 2.6 percent from 1.8 percent in April 2024.(Table 2)

On the uptrend of the May 2024 inflation, these three commodity groups had a share of 50.7 percent, 39.2 percent, and 10.1 percent, respectively.

Three commodity groups posted an uptrend in the overall inflation for the Bottom 30% Income household in Davao de Oro in the month of May 2024. These are the Food and non-alcoholic beverages with 9.6 percent inflation from 9.2 percent in April 2024, Housing, water, electricity, gas and other fuels with -13.1 percent inflation from -15.1 percent inflation in April 2024, and Transport with 2.6 percent inflation from 1.8 percent in April 2024.

The following commodity groups posted a downtrend in the overall inflation during the period as compared with their previous month’s inflation rates:

a. Alcoholic beverages and tobacco, 2.4 percent;
b. Clothing and footwear, 4.7 percent;
c. Furnishings, household equipment and routine household maintenance, 3.2 percent;
d. Health, 1.7 percent;
e. Recreation, sport and culture, 10.8 percent; and
f. Personal care, and miscellaneous goods and services, 2.3 percent.

Meanwhile, the price indices of the commodity groups of Information and communication, Education services, Restaurant and accommodation services, and Financial Services retained their inflation rates from April 2024 to May 2024. (Table 2)

Food and non-alcoholic beverages group shared the highest contribution for the month’s inflation rate with 131.2 percent share (5.4 points). As to the percent share to the month’s uptrend rate of the said commodity group, Cereals and cereal products posted the highest percent share with 15.3 percent inflation rate, followed by Fish and other seafood with 8.5 percent inflation rate, and Vegetables, tubers, plantains, cooking bananas and pulses with 10.1 percent inflation rate. (Table 3)

The second highest contributor for the May 2024 inflation rate is the Transport commodity group with 4.6 percent share (0.2 point) among all items. Under this group, Fuels and lubricants for personal transport equipment posted the highest percent share with 6.3 percent inflation rate; followed by Motorcycles with 2.0 percent inflation rate, and Maintenance and repair of personal transport equipment with 1.6 percent inflation rate.

Clothing and footwear commodity group ranked third with 2.8 percent share (0.1 point). Under this group, Garments posted the highest percent share with 5.4 percent inflation rate, followed by Shoes and other footwear with 3.2 percent inflation rate, and Other articles of clothing and clothing accessories with 3.5 percent inflation rate. (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.

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).