Release Date :
Reference Number :
SR-2022-07
The headline inflation in Davao Occidental increased further to 5.1 percent in May 2022, from 3.5 percent in April 2022. This is the highest recorded inflation since June 2019. Inflation in May 2021 was lower at 1.8 percent. The average inflation for the first five months of the year stood at 2.8 percent. (Table A and Figure 1)
The increase in the province inflation was mainly brought about by the higher annual increase in the index for transport at 23.2 percent; alcoholic beverages and tobacco, 12.6 percent; and housing, water, electricity, gas and other fuels, 4.9 percent. Also contributing to the uptrend in the overall inflation during the period were the higher annual increments in the indices of the following commodity groups as compared with their previous month’s inflation rates:
a. Food and non-alcoholic beverages, 4.1 percent;
b. Health, 3.6 percent; and
c. Recreation Sport and Culture, 1.7 percent.
Meanwhile, annual uptick slowed down in the index of clothing and footwear at 1.0 percent. 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 increased further by 4.1 percent in May 2022, from 0.5 percent in the previous month. In May 2021, food and non- alcoholic beverages index was lower by 1.4 percent.
The annual growth rate of the oils and fats index went up to 29.7 percent during the month, from 20.4 percent in the previous month. In addition, double-digit growth rate was observed in vegetables, tubers, plantains, cooking bananas and pulses index at 22.1 percent and sugar, confectionery and desserts at 10.0 percent.
The following food groups exhibited higher annual increments during the month:
- Milk, other dairy products, and eggs, 7.5 percent;
- Meat and other parts of slaughtered land animals, 4.2 percent;
- Ready-made food and other food products n.e.c., 3.1 percent;
- Fruits and nuts, 2.8 percent; and
- Cereals and cereal products, 2.4 percent.
On the other hand, the fish and other seafood index had a lower annual uptick at -1.2 percent. (Table C)
In addition, the May 2022 Purchasing Power of Peso (PPP) in Davao Occidental dropped to 0.87 from 0.90 in April 2022. (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.
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