The headline inflation of prices in Davao de Oro retained at 0.8 percent in January 2025 from December 2024. This brings the provincial average inflation rate to 0.8 percent. The inflation rate in January 2024 was observed at 4.1 percent. (Table 1 and Figure 1)

 

The unchanged provincial inflation rate in January 2025 from December 2024 was mainly driven by the retention in the indices of the following commodity groups: (a) Information and communication at 0.1 percent; (b) Education Services at 0.7 percent; and (c) Financial services. (Table 2)

Meanwhile, food and non-alcoholic beverages commodity group posted lower inflation rates at 0.6 percent in January 2025 from zero annual growth in December 2024. (Table 2)

 

On the other hand, faster annual increment in the indices of commodity groups as compared to their respective previous month’s inflation rates are as follows:

a. Alcoholic beverages and tobacco at 1.4 percent;
b. Clothing and footwear at 2.2 percent;
c. Furnishings, household equipment and routine household maintenance at 3.8 percent;
d. Health at 3.7 percent;
e. Transport at 0.2 percent;
f. Recreation, sport and culture at 2.6 percent;
g. Restaurants and accommodation services at 18.1 percent; and
h. Personal care, and miscellaneous goods and services at 2.3 percent.

In addition, Housing, water, electricity, gas and other fuels commodity group posted a slower annual decline in its inflation rate from year-on-year percentage annual drop at -0.5 percent to -0.4 percent.

Moreover, Restaurants and accommodation services commodity group had the highest contribution for the month’s inflation rate with 89.7 percent share (0.72 points). As to the share to the month’s inflation rate of the said commodity group, Restaurants, café and the like posted the highest share of 89.7 percent (0.72 points) and had an 18.1 percent inflation rate.

 

The second highest contributor is the Furnishings, household equipment and routine household maintenance commodity group with 14.8 percent share (0.12 points) among all items. As to the share to the month’s inflation rate of the said commodity group, goods and services for routine household maintenance posted the highest share of 13.9 percent (0.11 points) with 4.9 percent inflation rate. This was followed by household appliances with 0.5 percent share and 0.8 percent inflation rate. Finally, Glassware, tableware and household utensils had the third highest share with 0.2 percent share and 4.0 inflation rate.

 

Personal care, and miscellaneous goods and services commodity group ranked third with 12.2 percent contribution (0.10 points). As to the share to the month’s inflation rate of the said commodity group, hairdressing salons and personal grooming establishments posted the highest share of 6.4 percent (0.05 points) with 9.2 percent inflation rate. This was followed by other appliances, articles and products for personal care with 5.5 percent share (0.04 points) and 1.4 percent inflation rate. Finally, Other personal effects had the third highest share with 0.3 percent and 0.5 percent inflation rate. (Table 5)

 

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 0.76 in January 2025.

 

Technical Notes:

Price – is the amount or value paid in exchange for the commodity, or a service rendered.

Retail/Consumer Price – refers to the price at which a commodity is sold in small quantities for consumption.

Market Basket – a term used to refer to a sample of goods and services that are commonly 
purchased and bought by an average Filipino household.

Consumer Price Index (CPI) – it is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by an average Filipino household. It shows how much on the average, prices of goods and services have increased or decreased from a particular reference period known as base year.

Inflation Rate – is an indicator derived from the CPI. It refers to 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.

Weight – a value attached to a commodity or group of commodities depending on the magnitude of its contribution to the index.

Base Period – a reference date at which the index is equal to 100. Base year is 2018.

Index Methodology – a Laspeyre’s formula: fixed base year and weights. 

Purchasing Power of the Peso (PPP) – the measure of how much the peso in the base period is worth in the current period.

Percentage Change – is a simple mathematical concept that represents the degree of change over time. It is used for many purposes in finance, often to represent the price change of a security.

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).