The overall inflation in Davao Oriental increased to 0.8 percent in January 2025 from 0.7 percent in December 2024. In January 2024, the inflation rate was higher at 4.3 percent. (Tables A and B, and Figure 1)

The uptrend in the overall inflation in January 2025 was primarily influenced by the faster annual increment in the index of food and non-alcoholic beverages at 1.4 percent during the month from 1.3 percent in the previous month. The slower annual decline in the transport index at -3.3 percent during the month from -3.6 percent in December 2024 also contributed to the upward trend. 

Faster annual growth rates were also noted in the following commodity groups during the month: 

a. Personal care and miscellaneous goods and services, 2.9 percent from 2.4 percent; 

b. Furnishings, household equipment, and routine household maintenance, 2.4 percent from 2.1 percent; and

 c. Clothing and footwear, 3.8 percent from 3.6 percent. 

In contrast, the following commodity groups registered lower inflation rates during the month: 

a. Housing, water, electricity, gas, and other fuels, -1.3 percent from -0.9 percent; 

b. Health, 0.4 percent from 0.8 percent; and 

c. Recreation, sport and culture, 4.1 percent from 5.1 percent. The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (Tables C)

 At the provincial level, food inflation rose to 1.4 percent in January 2025 from 1.3 percent in the previous month. In January 2024, food inflation was higher at 4.2 percent. (Table D) 

The acceleration of food inflation in January 2025 was primarily brought about by the year-on-year increase in the index of vegetables, tubers, plantains, cooking bananas and pulses at 22.7 percent during the month from 15.9 percent in December 2024. The annual growth rate in the index of meat and other parts of slaughtered land animals recorded at 3.3 percent from 0.4 percent in the previous month, also contributed to the uptrend of the food inflation. 

Moreover, faster annual increments were also noted in the indices of the following food groups:

a. Fish and other seafood, 6.2 percent from 4.8 percent; 

b. Fruits and nuts, -1.8 percent from -5.0 percent;

c. Milk, other dairy products and eggs, 2.3 percent from 1.5 percent; 

d. Sugar, confectionery and desserts, -0.8 percent from -1.7 percent; 

e. Ready-made food and other food products n.e.c., 4.1 percent from 3.5 percent; and 

f. Flour, bread and other bakery products, pasta products, and other cereals, 2.2 percent from 2.1 percent.

In contrast lower annual increments were noted in the indices of the following food groups during the month: 

a. Rice, -4.4 percent from -0.5 percent;

 b. Corn, -20.5 percent from -14.8 percent; and 

c. Oils and fats, 3.9 percent from 5.6 percent. (Table D)

In January 2025, a mixed inflation trend was observed across all provinces and the highly urbanized city in the Davao Region compared to December 2024. Davao City and Davao Oriental recorded higher inflation rates, while Davao del Norte, Davao del Sur, and Davao Occidental registered lower rates. Meanwhile, Davao de Oro retained its previous month's inflation rate. Both Davao Oriental and Davao de Oro reported the lowest inflation rate at 0.8 percent, while Davao del Sur recorded the highest at 3.0 percent. (Table E)

Purchasing Power of the Peso (PPP) 

The purchasing power of the peso (PPP) shows how much the peso in the base year (2018) is worth in another period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100. 

As of January 2025, the purchasing power of the peso (PPP) in Davao Oriental remained at 0.77, indicating that PhP1.00 in 2018 is now equivalent to PhP0.77. The PPP was the same in January 2024 at 0.77. (Figure 2)

TECHNICAL NOTES 

Uses of CPI

The CPI is most widely used in the calculation of the inflation rate and purchasing power of peso. It is a major statistical series used for economic analysis and as a monitoring indicator of government economic policy. 

Computation of CPI The computation of the CPI involves consideration of the following important points: 

a. Base Year/Period - A period, usually a year, at which the index number is set to 100. It is the reference point of the index number series. 

b. Market Basket - A sample of the thousands of varieties of goods purchased for consumption and services availed by the households in the country selected to represent the composite price behavior of all goods and services purchased by consumers. 

c. Weighting System - The weighting pattern uses the expenditures on various consumer items purchased by households as a proportion to total expenditure. 

d. Formula - The formula used in computing the CPI is the weighted arithmetic mean of price relatives, the Laspeyre’s formula with a fixed base year period (2006) weights. 

e. Geographic Coverage - CPI values are computed at the national, regional, and provincial levels, and for selected cities. Note: CPIs and inflation rates by province and selected city are posted at the PSA website (https://openstat.psa.gov.ph/).

Approved for release: 

EMILY P. TOMOGDAN 

Chief Statistical Specialist