The Davao Occidental headline inflation increased to 5.6 percent in January 2024 from 5.1 percent in December 2023. In January 2023, the inflation rate was higher at 8.4 percent. (Table A and Figure 1)

The main source of the upward trend of the January 2024 inflation were contributed by the following commodity groups;
a. Food and non-alcoholic beverages from 9.1 percent to 10.3 percent;
b. Restaurant and accommodation services from 10.8 percent to 13.6 percent; and
c. Furnishings, household equipment and routine household maintenance from2.0 percent to 2.3 percent.

In contrast, lower annual inflation was noted in the indices of the following commodity groups during the month:
a. Alcohol beverages and tobacco, 16.3 percent from 17.1 percent;
b. Clothing and footwear, 3.6 percent from 4.5 percent;
c. Housing, water electricity, gas and other fuels, negative 7.8 percent from negative 6.9 percent;
d. Health, 0.4 percent from 0.8 percent;
e. Transport, negative 0.2 percent from 0.1 percent;
f. Recreation, sport and culture, 6.5 percent from 7.6 percent; and
g. Financial services, negative 1.8 percent from zero growth.

On the other hand, information and communication, and education services, retained their inflation with the previous months at 0.4 percent, and 3.7 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 10.7 percent in January 2024 from 9.3 percent in the previous month. In January 2023, the food inflation was lower at 10.6 percent.

The acceleration of food inflation in January 2024 was mainly brought about by the higher inflation for cereals and cereal products with an inflation rate of 27.4 percent from 22.2 percent in December 2023. This was followed by fish and other seafood with an inflation rate of 4.2 percent during the month from 1.3 percent in the previous month. Another contributed to higher food inflation is oil and fats which is at negative 21.7 percent in January 2024 from negative 29.3 percent in the previous month, and fruits and nuts with 7.1 percent during the month from 5.0 percent in December 2023. In addition, sugar, confectionery, and desserts posted higher inflation from negative 9.0 percent the previous month to negative 7.1 percent in January 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 1.2 percent to negative 4.3 percent;
b. Milk, other dairy products and eggs from 15.0 percent to 13.1 percent;
c. Vegetables, tubers, plantains, cooking bananas and pulses from negative 6.6 percent to negative 12.3 percent; and
d. Ready-made food and other food products n.e.c. from 2.3 percent to negative 1.1 percent. (Table C)

In addition, the January 2024 Purchasing Power of Peso (PPP) in Davao Occidental eased to 0.80. (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