The Davao Occidental annual headline inflation slightly declined to 6.9 percent in March 2024 from 7.0 percent in February 2024. With this month’s inflation, Davao Occidental average inflation for the first quarter of 2024 stood at 6.5 percent. In March 2023, the inflation rate was higher at 8.2 percent.(Table A and Figure 1)

The main source of the downward trend of the March 2024 inflation were contributed by the following commodity groups;
a. Alcohol beverages and tobacco, from 16.8 percent to 13.6 percent;
b. Food and non-alcoholic beverages from 11.6 percent to 11.3 percent;
c. Recreation, sport and culture, from 8.4 percent to 8.2 percent;
d. Clothing and footwear, from 3.8 percent to 3.6 percent; and
e. Housing, water electricity, gas and other fuels, from negative 5.9 percent to negative 6.1 percent.

In contrast, higher annual inflation was noted in the indices of the following commodity groups during the month;
a. Restaurant and accommodation services from 17.1 percent to 20.6 percent;
b. Transport, from 2.3 percent to 2.8 percent; and
c. Furnishings, household equipment and routine household maintenance, from 1.0 percent to 1.7 percent;

On the other hand, the following commodity groups retained their inflation with the previous month; 
a. Education services, with 3.7 percent;
b. Health with 1.2 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 11.8 percent in March 2024 from 11.9 percent in the previous month. In March 2023, the food inflation was lower at 11.0 percent.

The deceleration of food inflation in March 2024 was mainly brought about by the lower inflation for cereals and cereals products with an inflation rate of 26.9 percent from 28.7 percent in February 2024. This was followed by milk, other dairy products and eggs with an inflation rate of 8.6 percent during the month from 12.5 percent in the previous month. Another food group contributed to lower food inflation is fish and other seafood which is at 7.6 percent in March 2024 from 9.1 percent in the previous month, and ready-made food and other food products n.e.c with 0.9 percent during the month from 1.7 percent in February 2024.

Meanwhile, compared with their previous month’s inflation rates, higher annual growth rates during the month were observed in the indices of the following food groups;
a. Fruits and nuts from 7.9 percent to 15.8 percent;
b. Meat and other parts of slaughtered land animals from negative 6.3 percent to negative 3.8 percent;
c. Vegetables, tubers, plantains, cooking bananas and pulses from negative 7.1 percent to negative 6.5 percent;
d. Sugar, confectionery and desserts from negative 14.6 percent to negative 13.8 percent and; and
e. Oil and fats from negative 24.5 percent to negative 16 percent. (Table C)

In addition, the March 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