The Davao Occidental annual headline inflation continued its uptrend as it moved up further to 8.7 percent in August 2022, from 8.1 percent in July 2022. This is the highest recorded inflation since March 2019. With this month’s inflation, Davao Occidental average inflation from January to August 2022 stood at 4.7 percent. In August 2021, inflation rate was lower at 1.8 percent. (Table A and Figure 1)

The main source of the upward trend of the August 2022 inflation was the higher annual growth rate in the index for food and non-alcoholic beverages at 9.8 percent, from 8.3 percent in the previous month. Housing, water, electricity, gas and other fuels index with 9.2 percent annual growth, from 7.3 percent in July 2022. Also contributing to the uptrend in the overall inflation during the period were the higher annual increments in the indices of the following commodity groups:

1. Health, 3.5 percent;
2. Furnishings, household equipment and routine household maintenance, 3.3 percent;
3. Recreation, sport and culture, 3.3 percent;
4. Restaurant and accommodation services, 1.2 percent; and
5. Clothing and footwear, 1.0 percent.

On the other hand, the following commodity groups showed downtrend index. These are transport at 18.0 percent from 25.1 in July 2022 and alcoholic beverages and tobacco at 14.2 percent from 14.6 percent in previous month. The rest of the commodity groups either retained their previous month’s inflation rates or had zero percent annual growths. (Table B)

For food and non-alcoholic beverages index, it increased further to 9.8 percent from 8.3 percent in the previous month. In August 2021, food and non-alcoholic beverages index was lower at 1.3 percent.

The annual growth rate of sugar, confectionery and desserts index went up further to 65.2 percent during the month, from 53.2 percent in the previous month. In addition, double-digit growth rate was observed in meat and other parts of slaughtered land animals at 14.0 percent, and vegetables, tubers, plantains, cooking bananas and pulses at 12.5 percent.

The following food groups exhibited higher annual increments during the month:

1. Milk, other dairy products, and eggs, 9.5 percent;
2. Cereals and cereal products, 6.8 percent; and
3. Ready-made food and other food products n.e.c., 3.4 percent.

On the other hand, the oils and fats index had a lower annual uptick at 29.1 percent from 32.1 percent in July 2022. (Table C)

Technical Notes: