The Davao Occidental annual headline inflation declined to 7.4 percent in July 2024 from 8.3 percent in June 2024. With this month’s inflation, Davao Occidental average inflation for seven months of 2024 stood at 7.2 percent. In July 2023, the inflation rate was lower at 2.1 percent. (Table A and Figure 1)

The main source of down trends of the province inflation in July 2024 were contributed by the following commodity groups with slower movement of prices;
 a. Food and non-alcoholic beverages, from 11.8 percent to 10.4 percent;
 b. Transport, from 4.3 percent to 4.2 percent; 
 c. Furnishings, household equipment and routine household maintenance, from 3.9 percent to 3.7 percent;
 d. Housing, water electricity, gas and other fuels, from 4.6 percent to 3.4 percent; and
 e. Alcohol beverages and tobacco, from 0.6 percent to 0.4 percent.

In contrast, faster annual inflation was noted in the indices of the following commodity groups during the month;
 a. Recreation, sport and culture, from 8.1 percent to 9.1 percent;
 b. Clothing and footwear, from 4.4 percent to 5.4 percent; and
 c. Health, from with 1.0 percent to 1.4 percent.

On the other hand, the following commodity groups retained their inflation with the previous month; 
 a. Restaurant and accommodation services, at 15.2 percent;
 b. Education services, with 3.7 percent;
 c. Information and communication, with 0.3 percent; and
 d. Financial services, with negative 1.8 percent.

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 declined to 10.8 percent in July 2024 from 12.3 percent in June 2024. In July 2023, the food inflation was lower at 2.6 percent.

The deceleration of food inflation in July 2024 were contributed by the lower inflation of the following food groups;
 a. Cereals and cereal products from 23.7 percent to 20.7 percent;
 b. Oils and fats from 8.6 percent to 7.6 percent;
 c. Fish and other seafood from 7.6 percent to 6.6 percent;
 d. Vegetables, tubers, plantains, cooking bananas and pulses from 2.1 percent to negative 2.3 percent; and
 e. Sugar, confectionery and desserts from negative 10.7 percent to negative 18.9 percent.

Meanwhile, compared with their previous month’s inflation rates, higher annual growth rates during the month were observed on the following food groups;
 a. Ready-made food and other food products n.e.c. from 5.5 percent to 6.3 percent;
 b. Milk, other dairy products and eggs from 4.0 percent to 4.3 percent; and
 c. Meat and other parts of slaughtered land animals from negative 0.6 percent to 3.4 percent.

On the other hand, fruits and nuts retained its annual inflation rate at 21.1 percent. (Table C)

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