The inflation rate in Davao Oriental experienced growth this month, increasing to -2.1 percent, up from -3.3 percent in May 2025. This increase results in an average inflation rate of -1.9 percent for the province from January to June 2025. For comparison, the inflation rate in June 2024 was higher at 4.8 percent (as shown in Tables A and B and Figure 1).

The recorded increase in the overall inflation in June 2025 was primarily influenced by the faster annual growth in the index of food and nonalcoholic beverages, which was -3.5 percent in June 2025 from -6.3 percent of the previous month. Another contributor to the increasing trend was transport, which recorded an annual increase of -7.6 percent during the month from -8.3 percent in the previous month. 

Moreover, an increase in annual increments were noted in the indices of the following commodity groups during the month: 

a. Restaurant and Accommodation Services, 1.6 percent from 1.1 percent; 

b. Clothing and Footwear, 3.1 percent from 2.9 percent; 

c. Alcoholic Beverages and Tobacco, 2.0 percent from 1.9 percent; and 

d. Health, 0.6 percent from 0.5 percent.

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

a. Housing, Water, Electricity, Gas, and Other Fuels, -0.2 percent from 1.7 percent; 

b. Information and Communication, -0.2 percent from 0.8 percent; 

c. Recreation, Sports, and Culture, 1.4 percent from 1.9 percent; 

d. Personal Care, and Miscellaneous Goods and Services, 3.0 percent from 3.2 percent; and 

e. Furnishings, Household Equipment, and Routine Household Maintenance, 1.3 percent from 1.4 percent.

Meanwhile, the indices of the rest of the commodity groups retained their respective previous month’s annual rates. (as shown in Table C) 

At the provincial level, food inflation increased to -3.9 percent in June 2025 from -7.0 percent in the previous month. In June 2024, food inflation was higher at 7.1 percent. (as shown in Table D)

 The acceleration of food inflation in June 2025 was primarily brought about by the faster inflation rate of Fruits and Nuts at 24.4 percent during the month from 7.5 percent in May 2025. This was followed by the faster year on-year increase of Fish and Other seafood at -1.0 percent during the month from -12.3 percent in May 2025.

 In addition, higher inflation rates during the month were noted in the indices of the following food items: 

a. Milk, other dairy products and eggs, 10.7 percent from 4.8 percent; 

b. Vegetables, tubers, plantains, cooking bananas and pulses, 2.5 percent from -0.5 percent; 

c. Sugar, confectionery and desserts, 5.0 percent from 3.5 percent

 d. Meat and other parts of slaughtered land animals, 6.4 percent from 5.9 percent; and 

e. Flour, Bread and Other Bakery Products, Pasta, and Other Cereals, 1.0 percent from 0.5 percent.

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

a. Corn, -26.1 percent from -23.7; 

b. Ready-made food and other food products n.e.c , 1.5 percent from 3.0 percent; 

c. Rice, -17.8 percent from -17.1 percent.

(as shown in Table D)

In June 2025, a mixed inflation trend was observed across all provinces and the highly urbanized city in the Davao Region, compared to May 2025. Davao City, Davao de Oro, Davao Oriental, and Davao del Norte recorded high inflation rates, while Davao del Sur and Davao Occidental recorded a lower inflation rate compared to the previous month. Davao Occidental reported the lowest inflation rate at -3.5 percent, whereas Davao City had the highest rate at 2.0 percent. (as shown in 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 June 2025, the purchasing power of the peso (PPP) in Davao Oriental declined to 0.78, indicating that PhP 1.00 in 2018 is now equivalent to PhP0.78. The PPP was higher than in June 2024 at 0.76. (as shown in 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