The Davao Occidental headline inflation rate for the bottom 30% income households increased to 7.8 percent in February 2024 from 5.4 percent in January 20247. In February 2023, the inflation rate was posted at 11.6 percent. (Table A and Figure 1)

The main driver of the upward trend of the overall inflation for this income group in February 2024 was the year-on-year growth in the heavily weighted food and non-alcoholic beverages at 12.8 percent from 10.7 percent in the previous month. This was followed by restaurant and accommodation services, which posted a higher annual increase of 19.3 percent during the month from 15.5 percent in January 2024, and alcoholic beverages and tobacco index, which registered faster annual increase of 18.6 percent in February 2024 from 17.8 percent annual increase in the previous month.

Higher annual increments of the following commodity groups were also noted;
a. Transport at 3.6 percent from 1.1 percent;
b. Clothing and footwear at 4.1 percent from 4.0 percent;
c. Recreation, sport and culture at 8.9 percent from 6.8 percent;
d. Health at 2.2 percent from 0.8 percent; and
e. Housing, water, electricity, gas and other fuels at -11.3 percent from -16.2 percent.

In contrast, lower annual growth rates were noticed in the indices of furnishing, household equipment and routine household maintenance at 1.0 percent in February 2024 from 2.7 percent in the previous month, and information and communication at 0.3 percent during the month from 0.4 percent in January 2024.

The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (Tables B)

Food inflation for the bottom 30% income households at the provincial level moved faster pace of 13.1 percent in February 2024 from 11.0 percent in the previous month. In February 2023, its annual increase was observed at 12.1 percent.

The uptrend in the food inflation was mainly brought about by the higher inflation for cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals with an inflation rate of 28.8 percent from 25.8 percent in January 2024. This was followed by fish and other seafood with an inflation rate of 12.1 percent during the month from 6.7 percent in the previous month. Another contributed to higher food inflation is ready-made food and other food products n.e.c. which is at 1.9 percent in February 2024 from negative 1.0 percent in the previous month, and vegetables, tubers, plantains, cooking bananas and pulses with negative 7.0 percent during the month from negative 11.7 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. Milk, other dairy products and eggs from 13.7 percent to 13.4 percent;
b. Oils and fats from negative 28.0 percent to negative 33.0 percent;
c. Sugar, confectionery and desserts from negative 6.5 percent to negative 14.0 percent; and
d. Meat and other parts of slaughtered land animals from negative 4.7 percent to negative 6.6 percent. (Table C)

Note: CPIs and inflation rates for the bottom 30% income households by region and province are posted at the PSA OpenSTAT portal at https://openstat.psa.gov.ph/PXWeb/pxweb/en/DB/DB__2M__PI__BIH__2018/?tablelist=true .

APPROVED FOR RELEASE:



JESSIE A. MADULIN
Chief Statistical Specialist