The Davao Occidental annual headline inflation slide to 8.4 percent in January 2023, from 9.2 percent in December 2022. In January 2022, inflation rate was lower at 1.9 percent. (Table A and Figure 1) 
 

 

The main source of the downward trend of the January 2023 inflation were contributed by the following commodity groups;

On the other hand, alcoholic beverages and tobacco, 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 declined to 10.6 percent from 11.8 percent in the previous month.

 

The annual growth rate of sugar, confectionery and desserts index went down to 82.6 percent during the month, from 91.7 percent in the previous month. In addition, vegetables, tubers, plantains, cooking bananas and pulses exhibited lower index at 8.1 percent in January 2023 from 17.4 percent last December 2022.

 

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

 

 

On the other hand, milk, other dairy products and eggs index had accelerated to 14.8 percent from 12.1 percent in December 2022. Also exhibiting higher increments are fruits and nuts, and meat and other parts of slaughtered land animals at 13.8 percent and 10.0 percent this month from 10.8 percent and 8.4 percent respectively of the previous month. (Table C)

 

 

In addition, the January 2023 Purchasing Power of Peso (PPP) in Davao Occidental declined to 0.84. (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-onyear 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.