The Davao Occidental annual headline inflation declined further to negative 0.7 percent in March 2025 from negative 0.3 percent in February 2025. In March 2024, the inflation rate was higher at 6.9 percent. (Table A and Figure 1) 

The main sources of down trend of the province inflation in March 2025 were contributed by the slower movement of prices of the following commodity groups;
a. Restaurant and accommodation services, from 16.9 percent to 14.6 percent;
b. Housing, water, electricity, gas and other fuels, from 12.8 percent to 10.9 percent;
c. Clothing and footwear, from 7.3 percent to 6.2 percent;
d. Furnishings, household equipment and routine household maintenance, from 6.4 percent to 6.2 percent; 
e. Alcohol beverages and tobacco, from 2.2 percent to 1.9 percent; and
f. Transport, from negative 1.2 percent to negative 2.7 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 12.6 percent to 14.5 percent;
b. Health, from 4.2 percent to 4.5 percent;
c. Information and communication; from 0.0 percent to 1.0 percent; and
d. Food and non-alcoholic beverages, from negative 6.2 percent to negative 6.0 percent.

On the other hand, and education services retained their inflation with the previous month at negative 0.3 percent.

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

The food inflation at the provincial level slightly increased to negative 7.0 percent in March 2025 from negative 7.1 percent in February 2025. In March 2024, the food inflation was higher at 11.8 percent.

The acceleration of food inflation in March 2025 were contributed by the higher inflation of the following food groups;
a. Oils and fats from 51.0 percent to 59.7 percent;
b. Ready-made food and other food products n.e.c from 9.2 percent to 9.8 percent;
c. Vegetables, tubers, plantains, cooking bananas and pulses from negative 3.9 percent to 1.8 percent;
d. Fish and other seafoods, from negative 2.4 percent to negative 0.8 percent;
e. Sugar, confectionery and desserts from negative 8.2 percent to negative 1.3 percent; and
f. Corn, from negative 24.1 percent to negative 22.4 percent.

On the other hand, compared with their previous month’s inflation rates, lower annual growth rates during the month were observed on the following food groups;
a. Meat and other parts of slaughtered land animals from 10.8 percent to 8.2 percent;
b. Milk, other dairy products and eggs, from 3.9 percent to 3.3 percent;
c. Fruits and nuts, from negative 7.3 percent to negative 14.3 percent; and
d. Rice, from negative 18.8 percent to negative 20.1 percent; (Table C)
 

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