The headline inflation or the overall inflation in the province of Davao de Oro for the Bottom 30% of Income Households decelerated to 0.2 percent in January 2025 from 0.4 percent in December 2024. This brings the year-to-date average inflation rate to 0.2 percent. Inflation of prices in January 2024 was observed at 2.6 percent. (Table 1 and Figure 1)

 

The downtrend of provincial inflation for the bottom 30% was mainly driven by a slower year-on-year decrease of -1.1 percent in January 2025 from a - 0.2 percent annual drop in the previous month in the index of Food and non-alcoholic beverages. (Table 2)

Also, Housing, water, electricity, gas and other fuels at -2.1 percent inflation posted a slower year-on-year decrease in January 2025 from their respective inflation annual drop in the previous month.

 

Meanwhile, the following commodity groups posted a faster annual increment in the overall inflation for the Bottom 30% Income Households and their corresponding inflation rate for January 2025 are as follows:

a. Alcoholic beverages and tobacco at 1.3 percent;
b. Clothing and footwear at 2.3 percent;
c. Furnishing, household equipment and routine household maintenance at 2.2 percent;
d. Health at 5.5 percent;
e. Transport at 0.5 percent;
f. Recreation, sport and culture at 3.2 percent;
g. Restaurants and accommodation services at 18.1 percent; and
h. Personal care, and miscellaneous goods and services at 2.7 percent.

Moreover, the following commodity groups retained their respective previous month’s inflation rates and are as follows:

a. Information and communication at zero inflation;
b. Education services at 1.3 percent; and
c. Financial services at zero inflation.

Furthermore, Restaurants and accommodation services commodity group had the highest contribution for the month’s inflation rate with 362.6 percent share (0.73 points). As to the share to the month’s inflation rate of the said commodity group, Restaurants, café and the like posted the highest percent share of 362.6 percentage (0.73 points) and having an 18.1 percent inflation rate. (Table 3)
 

The second highest contributor to the January 2025 inflation rate is the Personal care, and miscellaneous goods and services commodity group with 59.8 percent contribution (0.12 points). As to the share to the month’s inflation rate of the said commodity group, Other appliances, articles and products for personal care posted the highest percent share of 31.0 percent (0.06 points) with 1.7 percent inflation rate. This was followed by Hairdressing salons and personal grooming establishments with 27.4 percent share and 9.0 percent inflation rate.

 

Health commodity group ranked third with 43.0 percent share (0.09 points) to the January 2025 inflation rate. Under this commodity group, Medicines had the highest percentage share of 43.0 percent with an inflation rate at 5.7 percent. (Table 5)

 

The table below summarizes the inflation rates of Davao de Oro Province from January 2021 up to January 2025 since the rebasing of the market basket with 2018 as the base year.


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).