The headline inflation of prices in Davao de Oro decreased to -1.8 percent in May 2025 from -1.6 percent in April 2025. This brings the year-to-date provincial average inflation rate to -1.0 percent. The inflation rate in May 2024 was observed at 4.5 percent. (Table 1 and Figure 1)

 

The downtrend of provincial inflation in May 2025 was mainly driven by the lower annual growth rate in the indices of the following commodity groups: (a) Housing, water, electricity, gas and other fuels at 0.9 percent from 2.6 in April 2025 and (b) Transport at -3.3 percent from -2.9 percent in April 2025. (Table 2)

The percentage share of the above-mentioned commodity groups in the overall inflation in May 2025 are as follows: (a) Housing, water, electricity, gas and other fuels with 90.0 percent and (b) Transport with 10.0 percent.

 

On the other hand, the following commodity groups posted a faster annual increment in their respective inflation rate for the month of May 2025: 
a. Food and non-alcoholic beverages at -5.5 percent;
b. Alcoholic beverages and tobacco at 2.0 percent; 
c. Clothing and footwear at 2.3 percent; 
d. Furnishings, household equipment and routine household maintenance at 3.4 percent;  
e. Health at 4.8 percent; and 
f. Personal care, and miscellaneous goods and services at 2.9 percent.

Meanwhile, the indices of the following commodity groups remained at their respective previous month’s annual rates:
a. Information and communication at 0.1 percent; 
b. Recreation, sport and culture at 3.5 percent; 
c. Education services at 0.7 percent; 
d. Restaurants and accommodation services at 18.1 percent; and 
e. Financial services with zero percent.

The Food and non-alcoholic beverages commodity group had the highest contribution for the month’s inflation rate with 160.7 percent share (-2.89 points). As to the share to the month’s inflation rate of the said commodity group, Cereals and cereal products posted the highest percentage share of 195.7 percent (-3.52 points) and having a -18.4 percent inflation rate. This was followed by Vegetables, tubers, plantains, cooking bananas and pulses with a 13.9 percent share (-0.25 points) and -5.3 percent inflation rate. Sugar, confectionery, and desserts had the third highest percentage share of 6.3 percent (-0.11 points) with -7.9 percent inflation rate. (Table 3)

 

The second highest contributor is the Transport commodity group with 15.6 percent share (-0.28 points) among all items. As to the share to the month’s inflation rate of the said commodity group, Fuels and lubricants for personal transport equipment posted the highest share of 21.9 percent (-0.39 points) with -11.8 percent inflation rate. (Table 4)

 

Below is the summary of inflation rates in Davao de Oro Province since the rebasing of the market basket with 2018 as the base year.

 

Consequently, the Purchasing Power of Peso (PPP) with base year 2018 in Davao de Oro is equivalent to 0.78 in May 2025.