Release Date :
Reference Number :
DAVOC-SR-2023-01
The Davao Occidental annual headline inflation increased to 9.2 percent in December 2022, from 8.7 percent in November 2022. With this month’s inflation, Davao Occidental average inflation from January to December 2022 stood at 6.0 percent. In December 2021, inflation rate was lower at 1.0 percent. (Table A and Figure 1)
The main source of the upward trend of the December 2022 inflation was attributed to higher annual growth rate in the index for alcoholic beverages and tobacco at 17.8 percent, from 17.5 percent in the previous month, followed by food and nonalcoholic beverages at 11.8 percent from 10.7 percent in November 2022. Also contributing to the upward trend in the overall inflation during the period was transport, and furnishings, household equipment and routine household maintenance at 8.3 percent and 7.5 percent, from 7.5 percent and 7.4 in November 2022 respectively.
On the other hand, housing, water, electricity, gas, and other fuels, showed downtrend index from 9.4 percent in November 2022 to 8.2 percent this month. Health also exhibited a dip scenario from 4.1 percent last month to 3.8 percent this December 2022.
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 accelerated further to 11.8 percent from 10.7 percent in the previous month. In December 2021, food and non-alcoholic beverages index was lower at -1.3 percent.
The annual growth rate of vegetables, tubers, plantains, cooking bananas and pulses index went up to 17.4 percent during the month, from 14.9 percent in the previous month. In addition, double-digit acceleration rate was observed in milk, other dairy products and eggs at 12.1 percent in December 2022 from 11.6 percent last November 2022.
The following food groups exhibited higher annual increments during the month:
- Fish and other seafood, 8.3 percent; and
- Cereals and cereal products, 8.1 percent.
On the other hand, the sugar, confectionery and desserts index had declined at 91.7 percent from 92.7 percent in November 2022. Also exhibiting lower increments are oils and fats, and meat and other parts of slaughtered land animals at 19.6 percent and 8.4 percent from the previous month 21.3 percent and 10.5 percent respectively. (Table C)
In addition, the December 2022 Purchasing Power of Peso (PPP) in Davao Occidental remained at 0.85. (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
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