The headline inflation or the overall inflation in the province of Davao de Oro for the Bottom 30% of Income Households accelerated to 2.4 percent in October 2024 from 1.3 percent in September 2024. This brings the average inflation rate from January 2024 to October 2024 to 3.7 percent. Inflation of prices in October 2023 was observed at 2.2 percent. (Table 1 and Figure 1)

The uptrend of provincial inflation for the bottom 30% was mainly driven by faster annual increment in the index of the following commodity groups: (a) Food and non-alcoholic beverages at 5.9 percent from 3.3 percent in September 2024; (b) Transport at -4.0 percent from -4.8 percent in September 2024 and; (c) Personal care, miscellaneous goods and services at 1.8 percent from 1.1 percent in September 2024 (Table 2).

The percentage share of the above-mentioned commodity groups in the overall inflation for the bottom 30% in September 2024 are as follows: (a) Food and non-alcoholic beverages at 94.3 percent; (b) Transport at 3.7 percent and; (c) Personal care, miscellaneous goods and services at 2.0 percent.

The following commodity groups posted a faster annual increment in the overall inflation and their corresponding inflation rate for the Bottom 30% Income Households for the month of October 2024 are as follows:
a) Food and non-alcoholic beverages with 5.9 percent;
b) Transport with -4.0 percent and;
c) Personal care, and miscellaneous goods and services with 1.8 percent.

On the other hand, the following commodity groups posted a slower annual increment in the overall inflation for the Bottom 30% Income Households in Davao de Oro for the month of October 2024:

a) Alcoholic beverages and tobacco at 1.1 percent;
b) Clothing and footwear at 2.7 percent;
c) Housing, water, electricity, gas and other fuels at -8.9 percent; and
d) Furnishings, household equipment and routine household maintenance at 1.2 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) Health at 1.7 percent;
b) Information and communication at 0.0 percent;
c) Recreation, sport and culture at 1.8 percent;
d) Education services at 1.3 percent;
e) Restaurants and accommodation services at 8.2 percent; and
f) Financial services at 0.0 percent;

Food and non-alcoholic beverages group shared the highest contribution for the month’s inflation rate with 144.2 percent share (3.5 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 76.1 percent with an inflation rate at 7.1 percent, followed by Fish and other seafood with 25.6 percent share and inflation rate at 7.0 percent, and Oils and fats with 9.1 percent share with an inflation rate at 9.6 percent. (Table 3) 

The second highest contributor for the October 2024 inflation rate is the Restaurants and accommodation services commodity group with 14.2 percent share (0.3 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)

Personal care, and miscellaneous goods and services commodity group ranked third with 3.5 percent share (0.1 points). Under this commodity group, Other appliances, articles and products for personal care had the highest percentage share of 3.5 percent with an inflation rate at 2.4 percent. (Table 5)

The table below summarizes the inflation rates of Davao de Oro Province from January 2020 up to October 2024 since the rebasing of the market basket with 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 yearon-year change in the Consumer Price Index (CPI).