The Davao Occidental annual headline inflation increased to 8.7 percent in February 2023, from 8.4 percent in January 2023. With this month’s inflation, Davao Occidental average inflation for the first two months of 2023 stood at 8.6 percent. In February 2022, inflation rate was lower at 1.4 percent. (Table A and Figure 1) 
 

The main source of the upward trend of the February 2023 inflation were contributed by the following commodity groups;

1. Alcoholic beverages and tobacco from 18.4 percent to 18.9 percent;
2. Food and non-alcoholic beverages from 10.6 percent to 11.4 percent; 
    
3. Furnishings, household equipment and routine household maintenance from 7.5 percent to 8.3 percent;
4. Recreation, sport and culture from 6.8 percent to 7.6 percent;
5. Restaurants and accommodation services from 1.3 percent to 2.9 percent;
6. Clothing and footwear from 0.6 percent to 0.5 percent; and
7. Information and communication from 0.3 percent to 0.4 percent.

On the other hand, housing, water, electricity, gas, and other fuels, showed uptrend index from 17.8 percent in December 2022 to 18.4 percent this month. Health, and recreation, sport and culture also exhibited an uptick index from 3.8 and 5.6 percent last month to 4.0 and 6.8 percent this January 2023 respectively.

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 to 11.4 percent from 10.6 percent in the previous month.

The annual growth rate of sugar, confectionery and desserts index accelerated to 85.7 percent during the month, from 82.6 percent in the previous month. In addition, vegetables, tubers, plantains, cooking bananas and pulses accelerated its index to 18.9 percent this month from 8.1 percent last February 2023.

The following food groups had a higher annual increment during the month:

1. Milk, other dairy products and eggs, 16.6 percent;
2. Fruits and nuts, 14.7 percent;
3. Oils and fats, 10.6 percent;
4. Ready-made food and other food products n.e.c., 9.8 percent; and
5. Fish and other seafood, 9.7 percent.

On the other hand, cereals and cereal products index had declined to 5.1 percent from 7.3 percent in January 2023.

While meat and other parts of slaughtered land animals retained their previous month’s inflation rate at 10 percent. (Table C)

In addition, the February 2023 Purchasing Power of Peso (PPP) in Davao Occidental remained at 0.84. (Figure 2)