The overall inflation rate in Davao Oriental further declined to 1.1 percent in November 2024 from 1.6 percent in October 2024. This brings the provincial average inflation from January to November 2024 to 3.9 percent. In November 2023, the inflation rate was higher at 6.7 percent. (Tables A and B, and Figure 1)

The overall inflation rate declined in November 2024, mainly due to a slower annual increase in the food and non-alcoholic beverages index, which dropped to 2.6 percent from 3.6 percent in October. Recreation, sport, and culture also contributed to the decrease, with a sharper decline of 6.2 percent in November compared to 10.2 percent in October. Additionally, inflation for furnishings, household equipment and routine household maintenance eased to 1.8 percent from 2.4 percent in the previous month. 

Likewise, lower annual increments were noted in the indices of the following commodity groups during the month: 

a. Alcoholic beverages and tobacco, 1.3 percent from 1.9 percent; 

b. Housing, water, electricity, gas and other fuels, -1.8 percent from -1.7 percent; 

c. Health, 1.4 percent from 2.1 percent; and 

d. Clothing and footwear, 2.6 percent from 2.7percent.

In contrast, faster annual growth rate was observed in the index for restaurants and accommodation services at 0.6 percent during the month from -2.0 percent in October 2024. Additionally, the transport index experienced a slower annual decline of -5.9 percent in November 2024 from -6.7 percent annual decline in the previous month. 

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

At the provincial level, food inflation decreased to 2.7 percent in November 2024, down from 3.8 percent in October 2024. In comparison, food inflation in November 2023 was significantly higher at 7.4 percent. (Table D) 

The slowdown in food inflation was primarily driven by a reduced annual increase in rice prices, which fell to 4.2 percent in November 2024 from 9.0 percent in October 2024. Corn also experienced a significant decline in inflation, recording -7.4 percent compared to 1.6 percent in the previous month.

 Lower annual increments were also noted in the indices of the following food groups: 

a. Fish and other seafood, 5.0 percent from 6.3 percent; 

b. Milk, other dairy products and eggs, -0.1 percent from 1.2 percent; 

c. Fruits and nuts, 0.1 percent from 0.6 percent; and 

d. Oils and fats, 6.4 percent form 6.6 percent.

In contrast, higher year-on-year growth rates were noted in the indices of the following food groups during the month: 

a. Flour, Bread and other bakery products, pasta products, and other cereals, 1.9 percent form 1.8 percent; 

b. Meat and other parts of slaughtered land animals, -0.5 percent from -1.7 percent; 

c. Vegetables, tubers, plantains, cooking bananas and pulses, 13.5 percent from 5.4 percent; and

d. Sugar, confectionery and desserts, -2.8 percent from -11.0 percent.

The index for ready-made food and other food products n.e.c. maintained its inflation rate from the previous month. (Table D)

In November 2024, all provinces in the Davao Region, including Davao City, experienced lower inflation compared to October, except for Davao del Norte, which saw a higher inflation rate, and Davao Occidental, where the inflation rate remained unchanged. Davao Oriental recorded the lowest inflation rate at 1.1 percent, while Davao del Sur had the highest at 4.1 percent. (Table E)

Purchasing Power of t h e Peso (PPP)

The purchasing power of the peso (PPP) shows how much the peso in the base year (2018) is worth in another period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100. The PPP in Davao Oriental remained at 0.77 as of November 2024, meaning that PhP1.00 in 2018 is equivalent to PhP0.77 today. In contrast, the PPP in November 2023 was slightly higher at 0.78. (Figure 2)

TECHNICAL NOTES

Uses of CPI 

The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy. 

Computation of CPI 

The computation of the CPI involves consideration of the following important points: 

a. Base Year/Period - A period, usually a year, at which the index number is set to 100. It is the reference point of the index number series. 

b. Market Basket - A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers. 

c. Weighting System - The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure. 

d. Formula - The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2006) weights. 

e. Geographic Coverage - CPI values are computed at the national, regional, and provincial levels, and for selected cities.

 Note: CPIs and inflation rates by province and selected city are posted at the PSA website (https://openstat.psa.gov.ph/).

 Approved for release: 

EMILY P. TOMOGDAN

 Chief Statistical Specialist