The Davao Occidental annual headline inflation declined further to 6.8 percent in August 2024 from 7.4 percent in July 2024. With this month’s inflation, Davao Occidental average inflation for eight months of 2024 stood at 7.2 percent. In August 2023, the inflation rate was lower at 3.2 percent.(Table A and Figure 1)
The main source of down trends of the province inflation in August 2024 were contributed by the following commodity groups with slower movement of prices;
a. Food and non-alcoholic beverages, from 10.4 percent to 8.4 percent;
b. Education Services, from 3.7 percent to 0.6 percent;
c. Alcohol beverages and tobacco, from 0.4 percent to 0.0 percent; and
d. Transport, from 4.2 percent to negative 0.9 percent.
In contrast, faster annual inflation was noted in the indices of the following commodity groups during the month;
a. Recreation, sport and culture, from 9.1 percent to 9.9 percent;
b. Housing, water electricity, gas and other fuels, from 3.4 percent to 8.2 percent;
c. Furnishings, household equipment and routine household maintenance, from 3.7 percent to 4.4 percent; and
d. Health, from 1.4 percent to 1.7 percent.
On the other hand, the following commodity groups retained their inflation with the previous month;
a. Restaurant and accommodation services, at 15.2 percent;
b. Clothing and footwear, at 5.4 percent;
c. Information and communication, with 0.3 percent; and
d. Financial services, with negative 1.8 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 declined further to 8.6 percent in August 2024 from 10.8 percent in July 2024. In August 2023, the food inflation was lower at 4.8 percent.
The deceleration of food inflation in August 2024 were contributed by the lower inflation of the following food groups;
a. Fruits and nuts from 21.1 percent to 19.0 percent;
b. Cereals and cereal products from 20.7 percent to 17.4 percent;
c. Fish and other seafood from 6.6 percent to 4.6 percent;
d. Vegetables, tubers, plantains, cooking bananas and pulses from negative 2.3 percent to negative 8.6 percent; and
e. Sugar, confectionery and desserts from negative 18.9 percent to negative 20.5 percent.
Meanwhile, compared with their previous month’s inflation rates, higher annual growth rates during the month were observed on the following food groups;
a. Oils and fats from 7.6 percent to 11.2 percent;
b. Ready-made food and other food products n.e.c. from 6.3 percent to 8.1 percent; and
c. Milk, other dairy products and eggs from 4.3 percent to 5.1 percent
d. Meat and other parts of slaughtered land animals from 3.4 percent to 3.6 percent.(Table C)
In addition, the August 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