The Davao Occidental headline inflation or overall inflation increased further to 5.7 percent in September 2023 from 3.2 percent in August 2023. This makes the provincial average inflation from January to September 2023 to 5.7 percent. ln September 2022, the inflation rate was higher at 8.4 percent. (Table A and Figure 1)

The uptrend in the overall inflation in September 2023 was primarily brought about by the higher year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 10.0 percent during the month from 4.9 percent in the previous month. Transport, with inflation rate of negative -1.1 percent during the month from negative -2.7 percent in the previous month, also contributed to the uptrend of the headline inflation.

ln addition, higher annual increases were noted in the indices of the following commodity groups during the month:
    a. Alcoholic beverages and tobacco, 20.8 percent from 20.5 percent;
    b. Restaurants and accommodation services, 9.2 percent from 7.2 percent;
    c. Clothing and footwear, 3.9 percent from 3.4 percent; and
    d. Education services, 3.7 percent from 2.8 percent.

ln contrast, the following commodity groups showed lower inflation rates during the month:
    a. Housing, water, electricity, gas and other fuels, 6.3 percent from -3.6 percent;
    b. Health, l .2 percent from 1 .8 percent; and
    c. Recreation, sport and culture, 9.9 percent from 10.1 percent.

The indices of the rest of the commodity groups retained their respective previous month's annual increases, while the financial services and personal care, and miscellaneous goods and services remained at zero growth during the month. (Tables B)

The food inflation at the provincial level rose to 10.0 percent in September 2023 from 4.9 percent in the previous month. ln September 2022, the food inflation was lower at 8.7 percent.

The acceleration of food inflation in September 2023 was mainly brought about by the higher inflation for rice with a double-digit inflation rate of 26.7 percent from 9.6 percent in August 2023. This was followed by milk, other dairy products and eggs with an inflation rate of 14.0 percent during the month from 12.5 percent in previous month. Another contributed to higher food inflation is faster annual increments of fruits and nuts which is at 3.9 percent in September 2023 from 0.7 percent in the previous month, and meat and other parts of slaughtered land animals with negative -0.3 percent during the month from negative -2.1 percent in August 2O23. ln addition, oil and fats posted higher inflation from negative -33.0 percent previous month to negative -32.1 percent in September 2023.

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. Fish and other seafood from 6.9 percent to 6.3 percent;
    b. Flour, bread and other bakery products, pasta products, and other cereals from 5.4 percent to 5.3 percent;
    c. Sugar, confectionery and desserts from 10.3 percent to 4.1 percent;
    d. Ready-made food and other food products n.e.c. from 5.5 percent to 4.0 percent; and
    e. Vegetables, tubers, plantains, cooking bananas and pulses from 5.3 percent to 1 .6 percent. (Table C)

ln addition, the August 2023 Purchasing Power of Peso (PPP) in Davao Occidental eased further at 0.81. (Figure 2)

Technical Notes:

Consumer Price lndex (CPl) - 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.

lnflation Rate (lR) - The inflation rate is the annual rate of change, or the year-on-year change of the CPI expressed in percent. lnflation is interpreted in terms of declining purchasing power of money.

Headline lnflation - measures changes in the cost of living based on movements in the prices of a specified basket of major commodities. lt refers to the annual rate of change or the year-on-year change in the Consumer Price lndex (CPl).

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. lt 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