The headline inflation or the overall inflation in the province of Davao de Oro for the Bottom 30% of Income Households decelerated to 0.4 percent in December 2024 from 1.5 percent in November 2024. This brings the average inflation rate from January 2024 to December 2024 to 3.3 percent. Inflation of prices in December 2023 was observed at 3.3 percent. (Table 1 and Figure 1)

 

The downtrend of provincial inflation for the bottom 30% was mainly driven by lower inflation rate in the index of the following commodity groups: (a) Food and non-alcoholic beverages at -0.2 percent from 2.0 percent in November 2024; (b) Housing, water, electricity, gas and other fuels at -2.5 percent from -1.9 percent in November 2024; (c) Clothing and footwear at 2.0 percent from 2.3 percent in November 2024; and (d) Alcoholic beverages and tobacco at 1.2 percent from 1.4 percent in November 2024 (Table 2).

The percentage share of the above-mentioned commodity groups in the overall inflation for the bottom 30% in December 2024 are as follows: (a) Food and non-alcoholic beverages at 92.6 percent; (b) Housing, water, electricity, gas and other fuels at 6.5 percent (c) Clothing and footwear at 0.6 percent; and (d) Alcoholic beverages and tobacco at 0.3 percent.

 

On the other hand, the following commodity groups posted a faster annual increment in the overall inflation for the Bottom 30% Income Households and their corresponding inflation rate for the month of December 2024 are as follows:

a) Furnishings, household equipment and routine household maintenance at 1.7 percent;
b) Health at 4.7 percent; and
c) Restaurants and accommodation services at 16.2 percent.

Also, the following commodity groups posted a slower year-on-year decrease of inflation rate in December 2024 from their respective inflation annual drop in the previous month:

a) Transport at -2.5 percent from -4.0 percent.

Meanwhile, the following commodity groups retained their respective previous month’s inflation rates and are as follows:

a) Information and communication at 0.0 percent;
b) Recreation, sport and culture at 1.8 percent;
c) Education services at 1.3 percent;
d) Financial services at 0.0 percent; and
e) Personal care, and miscellaneous goods and services at 2.1 percent.

Moreover, Restaurants and accommodation services commodity group had the highest contribution for the month’s inflation rate with 160.6 percent share (0.64 points). As to the share to the month’s inflation rate of the said commodity group, Restaurants, café and the like posted the highest percent share of 160.6 percentage (0.64 points) and having a 16.2 percent inflation rate.

 

The second highest contributor for the December 2024 inflation rate is the Personal care, and miscellaneous goods and services commodity group with 23.0 percent contribution (0.09 points). As to the share to the month’s inflation rate of the said commodity group, Other appliances, articles and products for personal care posted the highest percent share of 13.1 percent (0.05 points) with 1.5 percent inflation rate. This was followed by Hairdressing salons and personal grooming establishment with 9.2 percent share and 6.3 percent inflation rate. 

 

Health commodity group ranked third with 6.6 percent share (0.1 points) to the December 2024 inflation rate. Under this commodity group, Medicines had the highest percentage share of 18.2 percent with an inflation rate at 4.9 percent.

 

The table below summarizes the inflation rates of Davao de Oro Province from January 2020 up to December 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 year-on-year change in the Consumer Price Index (CPI).