CITY OF DAVAO

1.    Headline Inflation

In April 2025, the headline inflation rate in Davao City remained at 1.9 percent, the same rate level in March 2025. Notably, the current inflation rate was 2.8 percentage points lower than the figure reported in April 2024 at 4.7 percent. (Table A and Figure 1).

1.1 Main Drivers Contributing to the Headline Inflation 

The major contributor to the overall inflation of the city in April 2025 was a) Food and Non-Alcoholic Beverages at 2.6 percent, from 3.3 percent in the previous month. Also contributing to the city’s headline inflation was b) Housing, Water, Electricity, Gas and Other Fuels at 1.5 percent, from negative 0.3 percent in March 2025. The third major contributor was c) Education Services which remained at 11.4 percent, reflecting no change from the previous month.

Meanwhile, decreasing movement of prices was observed in the city of the following commodity groups: 

a)    Alcoholic Beverages and Tobacco at 4.2 percent, from 4.3 percent in the previous month;
b)    Clothing and Footwear at 2.4 percent, from 2.9 percent in the previous month; and
c)    Transport at negative 3.6 percent, from negative 2.3 percent in the previous month.

On the other hand, faster annual increments were recorded in the indices of a) Personal Care, and Miscellaneous Goods and Services at 4.1 percent, from 3.3 percent in the previous month; b) Furnishings, Household Equipment, and Routine Household Maintenance at 3.1 percent, from 2.7 percent in the previous month; c) Health at 2.8 percent from 2.4 percent in the previous month; and d) Recreation, Sport, and Culture at 5.3 percent from 4.7 percent previous month.

Meanwhile, Restaurants and Accommodation Services at 2.0 percent; Information and Communication at 0.3 percent; and Financial Services at 0.0 percent retained the previous month’s inflation rate.
 

2.    Food Inflation

Meanwhile, the city’s food inflation decreased to 2.5 percent in April 2025 from 3.3 percent in the previous month. The decrease was mainly due to a) Cereals and cereal products at negative 4.7 percent, from negative 3.1 percent in the previous month. This was followed by b) Vegetables, tubers, plantains, cooking bananas and pulses at 2.8 percent, from 8.4 percent in the previous month; and c) Meat and other parts of slaughtered land animals at 5.8 percent, from 6.9 percent in the previous month.

Decreasing rates in food inflation were also observed in d) Fruits and nuts at 4.0 percent, from 7.9 percent, and e) Ready-made food and other food products at 7.6 percent, from 9.4 percent in the previous month.

In contrast, increasing rates in food inflation were observed in the following food commodities:
a)    Fish and other seafood at 10.2 percent, from 7.8 percent in the previous month;
b)    Milk, other dairy products, and eggs at 4.4 percent, from 2.6 percent in the previous month; 
c)    Oils and fats at 2.5 percent, from 0.6 percent in the previous month; and
d)    Sugar, Confectionery, and Desserts at 0.9 percent, from 0.0 percent.

3.    Purchasing Power of Peso

The Purchasing Power of Peso (PPP) in Davao City for April 2025 remained unchanged at 0.76, same as the previous month’s PPP, as presented in Figure 2. This translates that to purchase the same set of goods and services that cost Php100.00 in 2018, one would require Php131.4 in April 2025.
 

Technical Notes:

Consumer Price Index (CPI) - The CPI is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

Inflation Rate (IR) - The inflation rate is the annual rate of change, or the year-on-year change of the CPI expressed in percent. Inflation is interpreted in terms of declining purchasing power of money.

Headline Inflation - measures changes in the cost of living based on movements in the prices of a specified basket of major commodities. It refers to the annual rate of change or the year-on-year change in the Consumer Price Index (CPI).

Purchasing Power of the Peso (PPP) - The purchasing power of the peso shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.
 

Approved for Release:

ADELINE G. BATUCAN
(Supervising Statistical Specialist)
Officer-In-Charge
Davao del Sur Provincial Statistical Office