The Davao Occidental annual headline inflation declined further to 2.2 percent in December 2024 from 3.3 percent in November 2024. With this month’s inflation, Davao Occidental average inflation for the year of 2024 stood at 5.8 percent. In December 2023, the inflation rate was higher at 5.1 percent.(Table A and Figure 1)

The main source of down trends of the province inflation in December 2024 were contributed by the slower movement of prices of housing, water electricity, gas and other fuels with 14.1 percent inflation from 20.8 percent in previous month. And, food and non-alcoholic beverages, from negative 1.3 percent in November 2024 to negative 2.3 percent in December 2024.

In contrast, faster annual inflation was noted in the indices of the following commodity groups during the month;
a. Restaurant and accommodation services, from 19.0 percent to 21.2 percent;
b. Recreation, sport and culture, from 12.3 percent to 12.5 percent;
c. Clothing and footwear, from 5.2 percent to 6.2 percent;
d. Furnishings, household equipment and routine household maintenance, from 4.7 percent to 5.9 percent;
e. Health, from 1.9 percent to 2.1 percent;
f. Alcohol beverages and tobacco, from 1.1 percent to 1.4 percent; and
g. Transport, from negative 2.9 percent to negative 0.9 percent.

On the other hand, education services and financial services retained their inflation with the previous month with negative 0.3 percent and negative 1.8 percent respectively.

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

The food inflation at the provincial level declined further to negative 3.0 percent in December 2024 from negative 1.7 percent in November 2024. In December 2023, the food inflation was higher at 9.3 percent.

The deceleration of food inflation in December 2024 were contributed by the lower inflation of rice and corn with negative 10.3 percent and negative 15.3 from negative 7.2 percent and negative 6.4 percent in November 2024 respectively. Fish and other seafood also declined to 5.2 percent in December 2024 from 6.5 percent in November 2024.

On the other hand, 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 30.8 percent to 45.2 percent;
b. Ready-made food and other food products n.e.c. from 11.1 percent to 11.5 percent;
c. Milk, other dairy products and eggs from 4.1 percent to 4.8 percent;
d. Meat and other parts of slaughtered land animals from 0.7 percent to 2.5 percent;
e. Vegetables, tubers, plantains, cooking bananas and pulses from negative 10.4 percent to negative 9.3 percent; and
f. Sugar, confectionery and desserts from negative 18.3 percent to negative 15.5 percent.

While fruits and nuts posted same inflation with the previous month at 9.4 percent. (Table C)

In addition, the December 2024 Purchasing Power of Peso (PPP) in Davao Occidental remained at 0.79. (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