CITY OF DAVAO

1.    Headline Inflation

In April 2025, the headline or overall inflation in the city of Davao for the bottom 30% income households increased at 1.5 percent, reflecting a 0.1 percentage points higher from the March 2025 rate of 1.4 percent. Notably, the current inflation rate was 4.4 percentage points lower than the figure reported in April 2024 at 5.9 percent. (Table A and Figure 1).

1.1 Main Drivers Contributing to the Headline Inflation of the Bottom 30% Income Households

The major contributor to the overall inflation of the bottom 30% income households in the city was a) Food and Non-Alcoholic beverages at 1.0 percent from 1.8 percent in the previous month. Also contributing to the city’s headline inflation for the bottom 30% income households was b) Housing, Water, Electricity, Gas and Other Fuels at 1.8 percent, from a negative 1.3 percent in the previous month. The third major contributor was c) Restaurants and Accommodation Services at 2.0 percent, reflecting no change from the previous month.

Meanwhile, faster annual growth in the indices was also observed in following commodity groups: a) Personal Care, and Miscellaneous Goods and Services at 5.9 percent, from 4.5 percent in the previous month; b) Alcoholic Beverages and Tobacco at 4.0 percent, from 3.7 percent in the previous month; c) Recreation, Sport, and Culture at 13.3 percent, from 11.5 percent in the previous month; d) Furnishings, Household Equipment, and Routine Household Maintenance at 4.6 percent, from 3.6 percent in the last month; and, e) Health at 6.4 percent, from 5.4 percent in the previous month.

On the other hand, the following commodity groups recorded slower price movements in April 2025:

a)    Clothing and Footwear at 3.0 percent, from 3.7 percent in the previous month; and
b)    Transport was at negative 2.7 percent, from negative 1.6 percent in the previous month.

Meanwhile, the commodity groups of Information and Communication at 0.1 percent; Education Services at 21.3 percent; and Financial Services at 0.0 percent retained their previous month’s inflation rates.
 

2.    Food Inflation

The Food inflation for the Bottom 30% Income Households in the city decreased to 0.9 percent in April 2025 from 1.7 percent in the previous month. The decrease was mainly due to a) Cereals and cereal products at negative 6.3 percent, from negative 4.0 percent in the previous month. This was followed by b) Vegetables, tubers, plantains, cooking bananas and pulses at 4.2 percent, from 10.5 percent in the previous month; Also, c) Meat and other parts of slaughtered land animals at 5.5 percent, from 6.8 percent in the previous month; d) Ready-made food and other products at 4.6 percent, from 7.3 percent in the previous month; and, e) Fruits and nuts at 3.4 percent, from 6.3 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 9.1 percent, from 5.0 percent in the previous month;
b)    Milk, other dairy products, and eggs at 4.2 percent, from 2.3 percent in the previous month; 
c)    Oils and fats at 18.4 percent, from 9.1 percent in the previous month; and
d)    Sugar, Confectionery, and Desserts at negative 0.1 percent, from negative 1.6 percent.

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.

Bottom 30% Household - Families that belong in the low-income bracket and the most vulnerable to economic and social difficulties. Based on the “relative poverty” concept, a household whose per capita income falls below the bottom 30% of the cumulative per capita distribution belongs to the low-income group.

One of the common characteristics of households in this income group is that expenditures on food items account for a more substantial proportion of expenditures compared to expenditures on other items. Price changes in food, therefore, would be expected to greatly affect this income group more than any other group.

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).

Approved for Release:

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