The headline inflation or the overall inflation in the province of Davao de Oro for the bottom 3oo/o of income households increased to 7.4 percent in August 2024 from 6.2 percent in July 2024.The inflation rate in August 2023 was lower at 0.4 percent. The average inflation for the year 2024 stood at 4.2 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 the Housing, water, electricity, gas, and other fuels which increased to 20.5 percent from -7.1 percent in July 2024. (Table 2)
 

Housing, water, electricity, gas and other fuels commodity group displayed an uptrend in the overall inflation al2O.5 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, nine commodity groups posted a downtrend in the overall inflation for the Bottom 30% lncome households in Davao de Oro for the month ofAugusl2024:
a) Food and non-alcoholic beverages with 7.5 percent;
b) Clothing and footwear with 3.2 percent;
c) Furnishings, household equipment and routine with 1.6 percent;
d) Health with 1.9 percent;
e) Transport with -1.5 percent;
f) lnformation and communication with 0.0 percent;
g) Recreation, sport and culture with 2.9 percent;
h) Education services with 1.3 percent; and
i) Personal care, and miscellaneous goods and services with 1.3 percent.

Meanwhile, the price indices of the commodity groups of Alcoholic beverages, Restaurant and accommodation services, and Financial services retained their inflation rates from July to August 2024. (Table 2)

Food and non-alcoholic beverages group shared the highest contribution for the month's inflation rate with 54.9 percent share (4.1 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 with 11.5 percent inflation rate, followed by Vegetables, tubers, plantains, cooking bananas and pulses with 1 7.1 percent inflation rate, and Milk, other dairy products and eggs with 7.3 percent inflation. (Table 3)

The second highest contributor for the August 2024 inflation rate is the Housing, Water, Electricity, Gas and other fuels commodity group with 38.9 percent share (2.9 points) among all items. Under this group, Electricity posted the highest percent share with 31.2 percent inflation rate, followed by Gas with 14.2 percent inflation rate, and Services for the maintenance, repair and security of the dwelling with 3.2 percent inflation rale. (Table 4)

Restaurants and Accommodation Services commodity group ranked third with 4.3 percent share (0.3 point). Under this group, Restaurants, caf6 and the like posted the highest percent share with 8.2 percent inflation rale. (Table 5)

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