The Davao Occidental annual headline inflation declined further to negative 3.5 percent in June 2025 from negative 2.6 percent in May 2025. In June 2024, the inflation rate was higher at 8.3 percent. (Table A and Figure 1)

The main sources of down trend of the provincial inflation in June 2025 were contributed by the slower movement of prices of the following commodity groups;
a. Restaurant and accommodation services, from 14.8 percent to 14.3 percent;
b. Clothing and footwear, from 5.7 to 4.2 percent;
c. Furnishings, household equipment and routine household maintenance, from 5.7 percent to 4.7 percent; 
d. Housing, water, electricity, gas and other fuels, from 4.9 percent to 3.0 percent; and
e. Food and non-alcoholic beverages, from negative 7.7 percent to 
negative 9.2 percent.

In contrast, faster annual inflation was noted in the indices of the following commodity groups during the month;
a. Recreation, sport and culture, from 10.0 percent to 11.1 percent;
b. Alcohol beverages and tobacco, from 4.0 percent to 4.1 percent;
c. Education services, from negative 0.3 to 3.1 percent; and
d. Transport, from negative 5.2 percent to negative 2.3 percent.

On the other hand, the following commodity groups retained their inflation with the previous month;
a. Health, at 4.1 percent; and
b. Information and communication, at 1.0 percent.

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

The food inflation at the provincial level decreased further to negative 10.3 percent in June 2025 from negative 8.6 percent in May 2025. In June 2024, the food inflation was higher at 12.3 percent.

The deceleration of food inflation in June 2025 was contributed by the slower inflation of the following food groups;
a. Oils and fats from 58.3 percent to 50.3 percent;
b. Ready-made food and other food products n.e.c from 6.6 percent to 5.3 percent;
c. Fish and other seafoods, from negative 2.1 percent to negative 2.7 percent;
d. Sugar, confectionery and desserts from negative 4.6 percent to negative 5.8 percent; 
e. Vegetables, tubers, plantains, cooking bananas and pulses from negative 4.9 percent to negative 6.8 percent; 
f. Corn, from negative 14.7 percent to negative 17.4 percent;
g. Fruits and nut, from negative 13.7 to negative 17.4 percent; and
h. Rice, from negative 23.6 percent to negative 26.8 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 5.6 percent to 6.3 percent; and
b. Milk, other dairy products and eggs, from 2.0 percent to 4.8 percent. (Table C)

In addition, the June 2025 Purchasing Power of Peso (PPP) in Davao Occidental remained at 0.80 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