SPECIAL RELEASE

Inflation rate of Davao del Norte decreased by 1.7 percentage points (2018=100) in February 2025

1.  Inflation in Davao del Norte

The headline inflation of Davao del Norte decreased by 4 percentage points in February 2025 (-0.5%) compared to its inflation rate in the same month last year, which was recorded at 3.5 percent. The current inflation rate (-0.5%) of the province is lower compared to the headline inflation of the Philippines and Davao Region which was recorded at 2.1 percent and 0.6 percent, respectively (Table A).

The average inflation of Davao del Norte for the year 2025 stood at 0.4 percent (Table B).

2. Contribution to the Inflation

Table C showed that the February 2025 inflation of Davao del Norte was mostly contributed by the indices of food and non-alcoholic beverages (-1.5%); transport (-1.9%); and restaurants and accommodation services (-0.1%). 

3. Share to the Trend of Inflation

The decrement in the inflation rate of Davao del Norte can be observed with its downward trend from 1.2 percent in January 2025 to -0.5 percent in February 2025. This trend is mainly contributed by the annual price decrease of food and non-alcoholic beverages; and transport with a recorded inflation rate of
-1.5 percent and -1.9 percent, respectively. Also contributing to this trend is the slower annual price increase of housing, water, electricity, gas and other fuels (from 1.0% to 0.2%). (Table D).

Despite the decrease in the inflation rate of province, an upward trend in February 2025 compared to their corresponding rates in January 2025 can be observed in Table D for the following commodities:

•      Alcoholic beverages and tobacco (from 4.3% to 5.3%);

•      Clothing and footwear (from 0.3% to 0.4%);

•      Recreation, sport and culture (from 1.7% to 1.8%); and

•      Personal care, and miscellaneous goods and services (from 2.4% to 2.6%).

It can also be observed that the following commodities has shown no sign of increase nor decrease in inflation rate in comparison to their corresponding rates in the last month:

•     Information and communication (0.0%);

•     Education services (0.4%);

•     Restaurants and accommodation services (-0.1%); and

•     Financial services (0.0%).

The inflation of the index for food decreased from 1.7% in January 2025 to -2.0% in February 2025. The downtrend of the food inflation was mostly attributed by the annual price decrease of vegetables, tubers, plantains, cooking bananas and pulses; and rice. Also contributing to this trend is the slower annual price increase of fish and other seafood (Table E).

4. Davao del Norte’s Inflation Rate vis-à-vis other Provinces of Davao Region

Among the five provinces and one HUC of Davao Region, Davao Oriental has the slowest recorded inflation rate in February 2025 with -1.7 percent. This was followed by Davao de Oro (-1.2%), Davao del Norte (-0.5%), Davao Occidental (-0.3%), 
Davao del Sur (0.7%), and Davao City (1.8%) (Table F).

5. Purchasing Power of Peso

The Purchasing Power of Peso (PPP) measures the current value of the peso in reference to its value in the base year. It has an inverse relationship with the Consumer Price Index (CPI) which means that if the CPI increases, the PPP decreases.

Figure 2 showed that the PPP for the province of Davao del Norte steadied and was recorded at 0.82 from November 2024 to February 2025. This suggests that Php100.00 in 2018 is currently valued at PhP82.00.