SPECIAL RELEASE

Inflation rate of Davao del Norte decreased by 0.4 percentage points (2018=100) in January 2025

Source: Retail Price Survey of Commodities for the Generation of Consumer Price Index Philippine Statistics Authority 

1. Inflation in Davao del Norte

The headline inflation of Davao del Norte increased by 0.2 percentage points in January 2025 (1.2%) compared to its inflation rate in the same month last year, which was recorded at 1.0 percent. The current inflation rate (1.2%) of the province is lower compared to the headline inflation of the Philippines and Davao Region which was recorded at 2.9 percent and 2.1 percent, respectively (Table A).

1. Contribution to the Inflation

Table C showed that the January 2025 inflation of Davao del Norte was mostly contributed by the indices of food and non-alcoholic beverages (1.6%); housing, water, electricity, gas and other fuels (1.0%); and furnishings, household equipment and routine household maintenance (4.1%). 

1. Share to the Trend of Inflation

The decrement in the inflation rate of Davao del Norte can be observed with its downward trend from 1.6 percent in December 2024 to 1.2 percent in January 2025. This trend is mainly contributed by the slower annual increase of the price index for food and non-alcoholic beverages (from 2.3% to 1.6%); and housing, water, electricity, gas and other fuels (from 1.1% to 1.0%) (Table D).

Despite the decrease in the inflation rate of the province, an upward trend in January 2025 compared to their corresponding rates in December 2024 can be observed in Table D for the following commodities:

• Alcoholic beverages and tobacco (from 3.9% to 4.3%);

• Furnishings, household equipment and routine household maintenance (from 3.7% to 4.1%);

• Transport (from -1.1% to -0.8%);

• Financial services (from -0.1% to 0.0%); and

• Personal care, and miscellaneous goods and services (from 1.9% to 2.4%).

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:

• Clothing and footwear (0.3%);

• Health (2.7%);

• Information and communication (0%);

• Recreation, sport and culture (1.7%);

• Education Services (0.4%); and

• Restaurants and accommodation services (-0.1%).

The inflation of the index for food decreased from 2.5% in December 2024 to 1.7% in January 2025. The downtrend of the food inflation was mostly attributed by the -2.8% annual price decrease of rice in January 2025 from its increase in the previous month, and the slower annual increase in the price indices of fish and other seafood; and fruits and nuts (Table E).

1. 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 and Davao de Oro has the slowest recorded inflation rate in January 2025 with 0.8 percent. This was followed by Davao del Norte (1.2%), Davao Occidental (1.6%),
Davao City (2.7%), and Davao del Sur (3.0%) (Table F).

1. 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 January 2025. This suggests that Php100.00 in 2018 is currently valued at PhP82.00.

Approved for Release:

MICHELLE O. MANINGO

(Supervising Statistical Specialist)

Officer-in-Charge