The Davao Occidental annual headline inflation increased to 7.0 percent in February 2024 from 5.6 percent in January 2024. With this month’s inflation, Davao Occidental average inflation for the first two months of 2024 stood at 6.3 percent. In February 2023, the inflation rate was higher at 8.7 percent.(Table A and Figure 1)

The main source of the upward trend of the February 2024 inflation were contributed by the following commodity groups;
a. Food and non-alcoholic beverages from 10.3 percent to 11.6 percent;
b. Restaurant and accommodation services from 13.6 percent to 17.1 percent;
c. Alcohol beverages and tobacco, from 16.3 percent to 16.8 percent;
d. Transport, from negative 0.2 percent to 2.3 percent;
e. Clothing and footwear, from 3.6 percent to 3.8 percent;
f. Recreation, sport and culture, from 6.5 percent to 8.4 percent;
g. Health, from 0.4 percent to 1.2 percent; and
h. Housing, water electricity, gas and other fuels, from negative 7.8 percent to negative 5.9 percent.

In contrast, lower annual inflation was noted in the indices of the following commodity groups during the month:
a. Furnishings, household equipment and routine household maintenance, 1.0 percent from 2.3 percent;
b. Information and Communication, 0.3 percent from 0.4 percent;

On the other hand, education services and financial services, retained their inflation with the
previous months at 3.7 percent, and negative 1.8 percent, respectively. 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 rose to 11.9 percent in February 2024 from 10.7 percent in the previous month. In February 2023, the food inflation was lower at 11.5 percent.

The acceleration of food inflation in February 2024 was mainly brought about by the higher inflation for cereals and cereals products with an inflation rate of 28.7 percent from 27.4 percent in January 2024. This was followed by fish and seafood with an inflation rate of 9.1 percent during the month from 4.2 percent in the previous month. Another contributed to higher food inflation is fruits and nuts which is at 7.9 percent in February 2024 from 7.1 percent in the previous month, and ready-made food and other food products n.e.c with 1.7 percent during the month from negative 1.1 percent in January 2024. In addition, vegetables, tubers, plantains, cooking bananas and pulses posted higher inflation from 7.1 percent the previous month to 7.9 percent in February 2024.

Meanwhile, compared with their previous month’s inflation rates, lower annual growth rates
during the month were observed in the indices of the following;
a. Meat and other parts of slaughtered land animals from negative 4.3 percent to negative 6.3 percent;
b. Milk, other dairy products and eggs from 13.1 percent to 12.5 percent;
c. Oils and fats from negative 21.7 percent to negative 24.5 percent;
d. Sugar, confectionery and desserts from negative 7.1 percent to negative 14.6 percent; (Table C)

 

In addition, the February 2024 Purchasing Power of Peso (PPP) in Davao Occidental eased to 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