Davao Region’s inflation slows down to 4.3% in July: PSA-11

By Che Palicte

August 8, 2023, 8:59 pm

DAVAO CITY – Davao Region's year-on-year regional inflation slowed down further to 4.3 percent in July from 5.7 percent in June this year, the regional Philippine Statistics Administration (PSA-11) office reported Tuesday.

Compared to July 2022, the agency said the inflation rate at that time was higher at 8.6 percent.

In a statement, the PSA-11 also noted that the average inflation rate from January to July this year stood at 7.4 percent.

It said the decline in the region’s overall inflation was mainly due to the slower annual growth rate in food and non-alcoholic beverages at 5.3 percent in July 2023 from 6.4 percent in the previous month.

Additionally, the slower annual increment of housing, water, electricity, gas, and other fuels at 4.2 percent in July 2023 from 6.5 percent in June 2023 contributed to the downward trend of headline inflation.

“The third main source of deceleration was on transport which recorded a slower annual decrease of -6.0 percent from -2.9 percent in June 2023,” the statement added.

Furthermore, the lower annual growth was also observed in the indices in the commodity groups of restaurants and accommodation services at 6.7 percent, personal care, and miscellaneous goods and services (5.5 percent).

Lower growths were also observed in furnishings, household equipment, and routine household maintenance (6.1 percent), alcoholic beverages and tobacco (14.7 percent); clothing and footwear (5.7 percent); and recreation, sport, and culture (7.1 percent).

The region’s food inflation continued to decelerate to 5.0 percent in July 2023 from 6.1 percent in the previous month. In July 2022, food inflation was higher at 9.7 percent.

PSA-11 said the deceleration of food inflation is primarily influenced by the annual decrease in fish and other seafood at -4.8 percent during the month from 0.3 percent in the previous month.

“This was followed by meat and other parts of slaughtered land animals at 3.5 percent in July 2023 from 5.8 percent in June 2023. Also contributing to the downtrend was the slower year-on-year growth of corn at 14.0 percent during the month from 21.5 percent in June 2023,” the statement further said.

Meanwhile, higher year-on-year growth rates were observed in the indices of rice at 5.2 percent from 2.5 percent; fruits and nuts at 13.6 percent from 8.2 percent; and vegetables, tubers, plantains, cooking bananas, and pulses at 9.0 percent from 5.2 percent.

PSA-11 said the food groups with the highest contribution to food inflation during the month were cereals and cereal products [rice, corn, and flour, bread and other bakery products, and pasta products] with 2.7 percentage points.

Milk and other dairy products and eggs also contributed with 0.8 percent, while vegetables, tubers, plantains, bananas, and pulses at 0.6 percent. (PNA)