Davao Region inflation rate drops to 3.9% in August

By Che Palicte

September 18, 2023, 3:48 pm

DAVAO CITY – Davao Region's year-on-year regional inflation declined to 3.9 percent in August this year from 4.3 percent in July, the Philippine Statistics Authority in Region 11 (PSA-11) said Monday.

In a statement, PSA-11 said the average inflation rate from January to August 2023 stood at 6.9 percent.

In August 2022, the region’s inflation was higher at 8.9 percent.

PSA-11 attributed the downtrend in the overall inflation due to the slower annual growth rate in housing, water, electricity, gas, and other fuels at -2.4 percent in August 2023 from 4.2 percent the previous month.

Additionally, the slower annual increments of education services at 3.9 percent from 6.8 percent in July 2023; and furnishings, household equipment and routine household maintenance at 6.0 percent, from 6.1 percent in the previous month, contributed to the downward trend.

The PSA also noted that higher annual growth rates were observed in the indices of the following commodity groups compared with their previous monthly inflation rate: food and non-alcoholic beverages at 6.0 percent, clothing and footwear (5.9 percent) and transport (-0.3 percent.).

Likewise, increases in indices were noted during the same period in information and communication (1.7 percent); recreation, sport and culture (7.3 percent); restaurants and accommodation services (6.8 percent); and personal care, miscellaneous goods and services (6.1 percent).

“The top three commodity groups contributing to the August 2023 regional headline inflation were food and non-alcoholic beverages with 2.6 percentage points, restaurants, and accommodation services with 0.5 percentage points, and alcoholic beverages and tobacco with 0.3 percentage points," PSA-11 added.

The acceleration of food inflation is primarily influenced by the annual increase in cereals and cereal products, particularly rice, at 10.1 percent from 7.5 percent in the previous month. It was followed by fish and other seafood at -3.2 percent in August 2023 from -4.8 percent in July 2023.

Also contributing to the uptrend was the faster year-on-year growth of vegetables, tubers, plantains, cooking bananas, and pulses at 12.0 percent; fruits and nuts (15.7 percent), and oils and fats (0.7 percent).

Meanwhile, the food groups that displayed reduced uptake in their annual growth rates were corn (10.7 percent); flour, bread, and other bakery products, pasta products, and other cereals (10.0 percent); meat and other parts of slaughtered land animals (2.4 percent), milk, other dairy products, and eggs (8.3 percent), and sugar, confectionery and desserts (18.4 percent). (PNA)