The Davao Occidental annual headline inflation eased further to 3.1 percent in June 2023, from 5.3 percent in May 2023. With this month’s inflation, Davao Occidental average inflation for the first semester of 2023 stood at 6.8 percent. In June 2022, inflation rate was higher at 7.0 percent. (Table A and Figure 1) 
 

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

a.     Alcoholic beverages and tobacco from 24.7 percent to 23.7 percent;

b.     Furnishing, household equipment and routine household maintenance from  8.4 percent to 7.9 percent;

c.      Food and non-alcoholic beverages from 6.8 percent to 4.5 percent;

d.     Housing, water, electricity, gas and other fuels from 3.8 percent to 0 percent; and

e.     Transport from negative -7.6 percent to negative -11.3 percent.

The rest of the commodity groups either retained their previous month’s inflation rates.  (Table B)

For food and non-alcoholic beverages index, it declined to 4.5 percent from 6.8 percent in the previous month.

The reason of deceleration trend of the June 2023 inflation of food and non-alcoholics beverages group were contributed by the following groups;

a.     Sugar, confectionery and desserts from 61.8 percent to 36.6 percent;

b.     Milk, other dairy products and eggs from 13.1 percent to 12.5 percent;

c.      Ready-made food and other food products n.e.c. from 8.0 percent to 7.1 percent;d.     Vegetables, tubers, plantains, cooking bananas and pulses from 10.6 percent to 5.7 percent;

e.     Cereals and cereal products from 2.9 percent to 1.0 percent;

f.       Meat and other parts of slaughtered land animals from 7.0 percent to 0.8 percent; and

g.     Oil and fats from negative -30.7 percent to negative -33.4 percent.

On the other hand, milk, fish and other seafood had increased its index to 8.5 percent from 6.1 percent. While fruits and nuts retained at 0.7 percent. (Table C)

In addition, the June 2023 Purchasing Power of Peso (PPP) in Davao Occidental still remained at 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-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