The headline inflation of prices in Davao de Oro increased to -1.5 percent in June 2025 from -1.8 percent in May 2025. This brings the year-to-date provincial average inflation rate to -1.1 percent. The inflation rate in June 2024 was observed at 3.4 percent. (Table 1 and Figure 1)


The uptrend in the provincial inflation in June 2025 was mainly driven by the faster annual growth rate in the indices of the following commodity groups: (a) Housing, water, electricity, gas and other fuels at 2.0 percent from 0.9 in May 2025, (b) Transport at -1.9 percent from -3.3 percent in May 2025, and (c) Personal care, and miscellaneous goods and services at 3.6 percent from 2.9 percent in May 2025 (Table 2)
The percentage share of the above-mentioned commodity groups in the overall inflation in June 2025 are as follows: (a) Housing, water, electricity, gas and other fuels with 48.4 percent, (b) Transport with 29.0 percent, and (c) Personal care, and miscellaneous goods and services with 7.7 percent.

The following commodity groups also posted a faster annual increment in their respective inflation rate for the month of June 2025:
a. Alcoholic beverages and tobacco at 2.7 percent;
b. Furnishings, household equipment and routine household maintenance at 4.1 percent;
c. Health at 5.2 percent;
d. Recreation, sport and culture at 3.6 percent; and
e. Education services at 1.7 percent.
On the other hand, the following commodity groups posted a slower annual increment in their respective inflation rate for the month of June 2025:
a. Food and non-alcoholic beverages at -5.6 percent; and
b. Restaurants and accommodation services at 15.6 percent.
Meanwhile, the indices of the following commodity groups remained at their respective previous month’s annual rates:
a. Clothing and footwear at 2.3 percent;
b. Information and communication at 0.1 percent; and
c. Financial services with zero percent.
The Food and non-alcoholic beverages commodity group had the highest contribution for the month’s inflation rate with 194.4 percent share (-2.92 points) and -5.6 percent inflation rate. 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 236.2 percent (-3.54 points) and having a -18.5 percent inflation rate. This was followed by Fish and other seafood with a 21.2 percent share (-0.32 points) and -3.7 percent inflation rate. Sugar, confectionery, and desserts had the third highest percentage share of 5.4 percent (-0.08 points) with -5.8 percent inflation rate. (Table 3)

The second highest contributor is the Transport commodity group with 10.8 percent share (-0.16 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 18.6 percent (-0.28 points) with -8.6 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 June 2025.
