The Davao Occidental annual headline inflation declined further to negative 0.3 percent in February 2025 from 1.6 percent in January 2025. In February 2024, the inflation rate was higher at 7.0 percent. (Table A and Figure 1)

The main sources of down trend of the province inflation in February 2025 were contributed by the slower movement of prices of the following commodity groups;
a. Restaurant and accommodation services, from 21.3 percent to 16.9 percent;
b. Housing, water, electricity, gas and other fuels, from 14.6 percent to 12.8 percent;
c. Clothing and footwear, from 7.9 percent to 7.3 percent.
d. Transport, from 1.3 percent to negative 1.2 percent; and
e. Food and non-alcoholic beverages, from negative 3.8 percent to negative 6.2 percent;

In contrast, faster annual inflation was noted in the indices of the following commodity groups during the month;
a. Furnishings, household equipment and routine household maintenance, from 5.9 percent to 6.4 percent; 
b. Health, from 2.5 percent to 4.2 percent; and
c. Alcohol beverages and tobacco, from 1.7 percent to 2.2 percent.

On the other hand, recreation, sport and culture, and education services retained their inflation with the previous month with 12.6 percent and negative 0.3 percent respectively.

While the financial services, personal care, and miscellaneous goods and services and information and communication remained at zero growth during the month. (Tables B)

The food inflation at the provincial level declined further to negative 7.1 percent in February 2025 from negative 4.7 percent in January 2025. In February 2024, the food inflation was higher at 11.9 percent.

The deceleration of food inflation in February 2025 were contributed by the lower inflation of the following food groups;
a. Oils and fats from 60.8 percent to 51.0 percent;
b. Ready-made food and other food products n.e.c from 11.0 percent to 9.2 percent;
c. Milk, other dairy products and eggs, from 4.8 percent to 3.9 percent;
d. Fish and other seafoods, from 4.1 percent to negative 2.4 percent;
e. Fruits and nuts, from negative 6.0 percent to negative 7.3 percent; and
f. Rice, from negative 12.9 percent to negative 18.8 percent.

On the other hand, compared with their previous month’s inflation rates, higher annual growth rates during the month were observed on the following food groups;
a. Meat and other parts of slaughtered land animals from 6.9 percent to 10.8 percent;
b. Vegetables, tubers, plantains, cooking bananas and pulses from negative 6.9 percent to negative 3.9 percent;
c. Sugar, confectionery and desserts from negative 11.3 percent to negative 8.2 percent; and
d. Corn, from negative 26.5 percent to negative 24.1 percent. (Table C)

In addition, the February 2025 Purchasing Power of Peso (PPP) in Davao Occidental improved to 0.79 cents. (Figure 2)

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.

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).

Purchasing Power of the Peso (PPP) - The purchasing power of the peso shows how much the peso in the base period is worth in the current period. It is computed as the reciprocal of the CPI for the period under review multiplied by 100.

Approved for Release:


JESSIE A. MADULIN
Chief Statistical Specialist