The headline inflation or the overall inflation in the province of Davao de Oro for the bottom 30% of income households decreased to 1.3 percent in September 2024 from 7.4 percent in August 2024. The inflation rate in September 2023 was higher at 4.4 percent. The average inflation for the year 2024 stood at 3.9 percent. (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 the following commodity groups of Housing, water, electricity, gas, and other fuels which decreased to -5.8 percent from 20.5 percent in August 2024; Food and non-alcoholic beverages which decreased to 3.3 percent from 7.5 percent in August 2024 and, Transport which decreased to -4.8 percent from -1.5 in August 2024 (Table 2).

On the downtrend of the September 2024 inflation, these three commodity groups had a share of 59.3 percent, 36.6 percent and 3.7 percent, respectively.

Only the Alcoholic beverages and tobacco commodity group displayed an uptrend in the overall inflation at 1.8 percent for the Bottom 30% income household in Davao de Oro during the period as compared with its previous month’s inflation rate.

On the other hand, the following commodity groups posted a downtrend in the overall inflation for the Bottom 30% Income households in Davao de Oro for the month of September 2024: 
    a) Food and non-alcoholic beverages at 3.3 percent;
    b) Housing, water, electricity, gas, and other fuels at -5.8 percent;
    c) Furnishings, household equipment and routine at 1.4 percent;
    d) Health at 1.7 percent;
    e) Transport with -4.8 percent;
    f) Recreation, sport and culture at 1.8 percent; and
    g) Personal care, and miscellaneous goods and services at 1.1 percent.

Meanwhile, the following commodity groups retained their inflation rates from August to September 2024. (Table 2)
    a) Clothing and footwear at 3.2 percent;
    b) Information and communication at 0 percent;
    c) Education services at 1.3 percent;
    d) Restaurants and Accommodation services at 8.2 percent; and
    e) Financial services at 0 percent;

Food and non-alcoholic beverages group shared the highest contribution for the month’s inflation rate with 150.7 percent share (1.96 points). As to the percent share to the month’s inflation rate of the said commodity group, Cereals and cereal products posted the highest percent share of 38.0 percent with an  inflation rate at 1.9 percent, followed by Vegetables, tubers, plantains, cooking bananas and pulses with 30.3 percent share and inflation rate at 8.7, and Milk, other dairy products and eggs with 26.7 percent share with an inflation rate at 9.7 percent. (Table 3)

The second highest contributor for the September 2024 inflation rate is the Restaurants and accommodation services commodity group with 26.6 percent share (0.35 points) among all items. Under this group, Restaurants, café and the like posted the highest percent share retaining its inflation rate at 8.2 percent. (Table 4)

Clothing and footwear commodity group ranked third with 6.4 percent share (0.08 points). Under this commodity group, Garments had the highest percentage share of 6.6 percent with an inflation rate at 3.9 percent. (Table 5)

The table below summarizes the inflation rates of Davao de Oro Province from January 2020 up to September 2024 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 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).