The Davao Occidental annual headline inflation declined further to 1.6 percent in January 2025 from 2.2 percent in December 2024. In January 2024, the inflation rate was higher at 5.6 percent. (Table A and Figure 1)

The main source of down trends of the province inflation in January 2025 were contributed by the slower movement of prices of food and non-alcoholic beverages, from negative 2.3 percent in December 2024 to negative 3.8 percent in January 2025.

In contrast, faster annual inflation was noted in the indices of the following commodity groups during the month;
a. Restaurant and accommodation services, from 21.2 percent to 21.3 percent;
b. Housing, water, electricity, gas and other fuels, from 14.1 percent to 14.6;
c. Recreation, sport and culture, from 12.5 percent to 12.6 percent;
d. Clothing and footwear, from 6.2 percent to 7.9 percent;
e. Health, from 2.1 percent to 2.5 percent;
f. Alcohol beverages and tobacco, from 1.4 percent to 1.7 percent;
g. Transport, from negative 0.9 percent to 1.3 percent; and
h. Financial services, from negative 1.8 to 0.0 percent.

On the other hand, furnishings, household equipment and routine household maintenance, and education services retained their inflation with the previous month with 5.9 percent and negative 0.3 percent respectively.

While the 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 4.7 percent in January 2025 from negative 3.0 percent in December 2024. In January 2024, the food inflation was higher at 10.7 percent.

The deceleration of food inflation in January 2025 were contributed by the lower inflation of the following food groups;
a. Corn, from negative 15.3 percent to negative 26.5 percent;
b. Rice, from negative 10.3 percent to negative 12.9 percent;
c. Fruits and nuts, from 9.4 percent to negative 6.0 percent;
d. Fish and other seafoods, from 5.2 percent to 4.1 percent; and
e. Ready-made food and other food products n.e.c from 11.5 percent to 11.0 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. Oils and fats from 45.2 percent to 60.8 percent;
b. Meat and other parts of slaughtered land animals from 2.5 percent to 6.9 percent;
c. Vegetables, tubers, plantains, cooking bananas and pulses from negative 9.3 percent to negative 6.9 percent; and
d. Sugar, confectionery and desserts from negative 15.5 percent to negative 11.3 
percent.

While milk, other dairy products and eggs posted same inflation with the previous month at 4.8 percent. (Table C)
 

In addition, the January 2025 Purchasing Power of Peso (PPP) in Davao Occidental eased to 0.78. (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