DAVAO Region's inflation rate increased to 5.1 percent in September 2023 from the previous month's 3.9 percent, as reported by the Philippine Statistics Authority (PSA).
Davao Region shares the second lowest inflation rate in Mindanao with Region 12 or Soccsksargen, while the lowest is in the Bangsamoro Autonomous Region in Muslim Mindanao (Barmm) at 5.1 percent this month.
Notably, the average inflation for the Davao Region from January to September 2023 stood at 6.8 percent.
“At the national level, the country's headline inflation moved upwards to 6.1 percent in September 2023, from 5.3 percent in the previous month,” PSA said in a statement.
According to the PSA, the recent increase in Davao Region's overall inflation is primarily attributed to the acceleration in the Food and Non-Alcoholic Beverages sector, now at eight percent, up from the previous month's rate of six percent, contributing to the 56 percent uptrend in inflation.
Randolph Anthony Gales, PSA-Davao Region director, in a virtual presser on October 13, explained:
“The primary source of faster inflation rate in September 2023 was the faster price movement of food and non-alcoholic beverages.”
He also said, “The main drivers to the uptick in inflation of food and non-alcoholic beverages is for the rise of prices of cereals and cereal products (commodity groups which includes rice, corn, flour, bread, and other bakery products), with 19 percent inflation from 10.1 percent inflation in August 2023, and meat and other parts of slaughtered land animals with 2.9 percent inflation from 2.,4 percent in the previous month.”
Additionally, there were faster annual increments in housing, water, electricity, gas, and other fuels, which saw a decrease of -1.1 percent (compared to -2.4 percent in August 2023).
Restaurants and accommodation services also contributed to the upward trend of regional headline inflation, rising to 9.5 percent from the previous month's 6.8 percent.
On the other hand, several commodity groups exhibited higher annual growth rates compared to their previous monthly inflation rates.
Transport saw an increase in inflation, now at 1.5 percent from -0.3 percent, while personal care and miscellaneous goods and services rose from 6.1 percent to 6.4 percent.
Alcoholic beverages and tobacco experienced an increment from 14.7 percent to 15.2 percent, while furnishings, household equipment, and routine household maintenance showed a slight rise from six percent to 6.1 percent.
Education services rose from 3.9 percent to four percent, and recreation, sport, and culture saw growth from 7.3 percent to 7.5 percent.
Meanwhile, the PSA data indicated lower annual growth rates in the commodity groups of health, which dropped from 5.7 percent to 5.3 percent, and information and communication, which decreased from 1.7 percent to 1.3 percent. The indices for clothing and footwear, as well as financial services, maintained their previous month's inflation rates, at 5.9 percent and 0 percent, respectively.
Price caps on rice not affecting recent uptrend in inflation
Despite the rising prices, Gales noted that the price caps on rice, set by the national government's Executive Order 39, have not impacted the recent uptrend in inflation.
The order, issued by President and Department of Agriculture Secretary Ferdinand "Bongbong" Marcos Jr., sets price ceilings at P45 per kilogram for well-milled rice and P41 for regular-milled rice.
Gales explained that the average price of rice is higher than the mandated prices due to several factors. The first phase of collecting data by the Philippine Statistics Authority (PSA) was conducted before the implementation of the price cap on rice. Additionally, the price of rice is collected twice a month in areas outside the National Capital Region.
The regional director said that there were instances where rice sold by some stores adhered to the price cap, while others sold rice at a higher price. This price variation pushed the average rice price for the month higher than the government-imposed price cap.
DA-Davao Region has stated that the executive order remains in effect as they have not received any communication from the Official Gazette, the Philippine Government’s official journal. ICE