The Davao Occidental annual headline inflation slightly increased to 7.0 percent in April 2024 from 6.9 percent in March 2024. With this month’s inflation, Davao Occidental average inflation for the four months of 2024 stood at 6.6 percent. In April 2023, the inflation rate was same at 7.0 percent. (Table A and Figure 1) 

The main source of the upward trend of the April 2024 inflation were contributed by the following commodity groups; 
a. Food and non-alcoholic beverages from 11.3 percent to 12.4 percent; 
b. Transport, from 2.8 percent to 5.5 percent; and 
c. Furnishings, household equipment and routine household maintenance, from 1.7 percent to 2.7 percent.

In contrast, slower annual inflation was noted in the indices of the following commodity groups during the month; 
a. Restaurant and accommodation services, from 20.6 percent to 14.6 percent; 
b. Recreation, sport and culture, from 8.2 percent to 5.1 percent; 
c. Alcohol beverages and tobacco, from 13.6 percent to 3.5 percent; 
d. Clothing and footwear, from 3.6 percent to 3.4 percent; and 
e. Health, from 1.2 percent to 1.0 percent.

On the other hand, the following commodity groups retained their inflation with the previous month;  
a. Education services, with 3.7 percent; 
b. Information and communication, with 0.3 percent; 
c. Financial services, with negative 1.8 percent; and 
d. Housing, water electricity, gas and other fuels, with negative 6.1 percent.

While the personal care, and miscellaneous goods and services remained at zero growth 
during the month. (Tables B)

The food inflation at the provincial level accelerated to 12.8 percent in April 2024 from 11.8 percent in the previous month. In April 2023, the food inflation was lower at 9.4 percent.

The increased of food inflation in April 2024 were contributed by the higher inflation of the following food groups; 
a. Fish and other seafood, from 7.6 percent to 11.0 percent; 
b. Milk, other dairy products and eggs, from 8.6 percent to 9.3 percent; 
c. Ready-made food and other food products n.e.c from 0.9 percent to 3.2 percent; 
d. Vegetables, tubers, plantains, cooking bananas and pulses from negative 6.5 percent to negative 2.1 percent; 
e. Oil and fats from negative 16.0 percent to negative 4.2 percent; and 
f. Sugar, confectionery and desserts from negative 13.8 percent to  negative 12.6 percent.

Meanwhile, compared with their previous month’s inflation rates, lower annual growth rates during the month were observed in cereals and cereal products with 25.8 percent inflation from 26.9 percent and meat and other parts of slaughtered land animals from negative 3.8 percent to negative 3.9 percent.

On the other hand, fruits and nuts remained its inflation rate from previous month at 15.8 percent (Table C)

In addition, the April 2024 Purchasing Power of Peso (PPP) in Davao Occidental remained at 0.78. (Figure 2) 

Technical Notes:

Consumer Price Index (CPI) - The CPI is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

Inflation Rate (IR) - The inflation rate is 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.

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).

Purchasing Power of the Peso (PPP) - The purchasing power of the peso shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100. 

APPROVED FOR RELEASE:

JESSIE A. MADULIN
Chief Statistical Specialist