DAVAO DEL SUR

1.    Headline Inflation

In April 2025, the headline or overall inflation in Davao del Sur for the bottom 30% income households increased at negative 0.4 percent, reflecting a 0.5 percentage points higher from the March 2025 rate of negative 0.9 percent. Remarkably, the current inflation rate was lower than the reported April 2024 inflation at 7.7 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 province was a) Food and Non-Alcoholic Beverages at negative 1.7 percent, from negative 2.4 percent in the previous month. Also contributing to the city’s headline inflation for the bottom 30% income households was b) Transport at negative 5.7 percent, from negative 5.1 percent in the previous month. The third major contributor was c) Financial Services at 0.0 percent, reflecting no change from the previous month.

Meanwhile, faster annual growth in the indices was also observed in the following commodity groups: a) Health at 0.9 percent, from 0.7 percent in the previous month; b)  Housing, Water, Electricity, Gas, and Other Fuels at 0.1 percent, from 0.0 percent in the previous month; c) Recreation, Sport, and Culture at 5.9 percent, from 5.6 percent in the previous    month; d) Clothing and Footwear at 8.1 percent, from 7.8 percent in March 2025; e) Information and Communication recorded at 10.9 percent from 9.6 percent in the last month; f) Furnishings, Household Equipment, and Routine Household Maintenance posted at 4.2 percent, from 3.8 percent in the previous month; and, g) Alcoholic Beverages and Tobacco at 8.1 percent, from 7.8 percent in the previous month.

On the other hand, Personal Care, and Miscellaneous Goods and Services showed slower price movements in April 2025 at 2.7 percent from 3.6 percent in the previous month.

Meanwhile, the following commodity groups maintained the same rate as in the previous month: (a) Education Services at 4.7 percent; and (b) Restaurants and Accommodation Services at 0.7 percent.
 

2.    Food Inflation

The Food inflation for the Bottom 30% Income Households in the Davao del Sur increased to negative 2.1 percent in April 2025 from negative 2.9 percent in March 2025. The increase was mainly due to:

a)    Oils and fats, with 76.8 percent from 60.5 percent in the previous month;
b)    Cereals and cereal products, negative 13.1 percent from negative 13.6 percent in the previous month;
c)    Milk, other dairy products and eggs, at 9.2 percent from 6.6 percent in the previous month;
d)    Fruits and nuts, with 9.3 percent from 4.9 percent in the previous month;
e)    Fish and other seafood, with 3.8 percent from 3.3 percent in the previous month;
f)    Meat and other parts of slaughtered land animals, at 8.2 percent from 7.8 percent in the previous month; and
g)    Vegetables, tubers, plantains, cooking bananas and pulses, negative 4.8 percent from negative 5.0 percent in the previous month;

In contrast, the following food commodities registered lower inflation rates:
a)    Sugar, confectionery and desserts at negative 1.5 percent, from 1.8 percent; and 
b)    Ready-made food and other food products, with 0.1 percent from 3.5 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