The overall inflation rate in Davao Oriental further slowed to 2.3 percent in September 2024 from 2.6 percent in August 2024. This brings the provincial average inflation from January to September 2024 to 4.5 percent. In September 2023, the inflation rate was higher at 6.5 percent. (Tables A and B, and Figure 1)

The downtrend in overall inflation in September 2024 was primarily driven by a slower annual increment in the transport index, which decreased to -7.4 percent in September 2024 from -3.3 percent in the previous month. Also contributing to the downtrend was housing, water, electricity, gas and other fuels with a faster year-on-year decrease of 0.6 percent during the month from a 1.4 percent in August 2024. In addition, a slower inflation rate was recorded for personal care, and miscellaneous goods and services during the month at 2.4 percent from 3.3 percent in August 2024.

Lower annual increments were also noted in the indices of the following commodity groups during the month:

a. Education services, 2.4 percent from 5.1 percent;

b. Recreation, sport and culture, 10.2 percent from 11.6 percent;

c. Clothing and footwear, 2.7 percent form 3.1 percent;

d. Furnishings, household equipment and routine household

maintenance, 2.3 percent from 2.6 percent; and

e. Health, 2.0 percent from 2.4 percent.

On the contrary, faster year-on-year increases were observed in the indices of food and non-alcoholic beverages at 4.5 percent from 4.0 percent in the previous month, and alcoholic beverages and tobacco at 2.0 percent from 1.6 percent in August 2024. Meanwhile, a smaller decline was recorded in the index of restaurants and accommodation services, which improved to-0.2 percent from -0.4 percent in August 2024.

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

Food inflation at the provincial level accelerated to 4.7 percent in September 2024 from 4.1 percent in the previous month. In September 2023, food inflation was higher at 8.2 percent. (Table D)

The acceleration of food inflation was mainly due to the higher annual increase in the prices of fish and other seafood, rising to 3.1 percent during the month from -9.3 percent in the previous month. Additionally, meat and other parts of slaughtered land animals recorded an inflation rate of -2.1 percent in September 2024, up from -4.9 percent in August 2024.

Higher year-on-year growth rates were also noted in the indices of the following food groups during the month:

a. Milk, other dairy products and eggs, -1.8 percent from

-4.4 percent;

b. Fruits and nuts, -4.7 percent from -7.4 percent;

c. Oils and fats, 6.5 percent form 4.4 percent; and

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

In contrast, lower annual increments were noted in the indices of the following food groups:

a. Rice, 13.1 percent from 20.1 percent;

b. Corn, 15.1 percent from 20.0 percent;

c. Vegetables, tubers, plantains, cooking bananas and pulses,

7.0 percent from 21.2 percent;

d. Sugar, confectionery and desserts, -12.8 percent

from -12.2 percent; and

e. Ready-made food and other food products N.E.C., 6.3 percent

from 9.0 percent. (Table D)

Relative to their August 2024 inflation rates, all provinces in the Davao Region, including Davao City, exhibited lower inflation in September 2024. Davao Del Norte recorded the lowest inflation rate at 1.1 percent, while Davao Occidental continued to have the highest rate at 3.6 percent. (Table E)

Purchasing Power of t h e Peso (PPP)

The purchasing power of the peso (PPP) shows how much the peso in thebase 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 September 2024, meaning that PhP1.00 in 2018 is equivalent to PhP0.77. In contrast, the PPP in September 2023 was slightly higher at 0.79. (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