The inflation rate in Davao Oriental has remained stable at -3.3 percent, consistent with the rate recorded in the previous month. This stability results in an average inflation rate of -1.6 percent for the province from January to May 2025. For comparison, the inflation rate in May 2024 was higher at 6.0 percent. (as shown in Tables A and B, and Figure 1)

The constant level in overall inflation in May 2025 was primarily influenced by the faster annual decline in the index of food and non-alcoholic beverages, which was -6.3 percent in May 2025 from -5.9 percent of the previous month.  Another contributor to the steady trend was transport, which recorded an annual decline of -8.3 percent during the month from -8.6 percent in the previous month.

In May 2025, a mixed inflation trend was observed across all provinces and the highly urbanized city in the Davao Region, compared to April 2025. Davao City, Davao de Oro, Davao Occidental, and Davao del Norte recorded lower inflation rates, while Davao Oriental maintained the same rate as the previous month. Conversely, Davao del Sur experienced a slight increase in its inflation rate. Davao Oriental reported the lowest inflation 

rate at -3.3 percent, whereas Davao City had the highest rate at 1.4 percent. (as shown in Table E)

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

1. Housing, Water, Electricity, Gas, and Other Fuels, 1.7 percent from 1.0 percent;
2. Personal Care, and Miscellaneous Goods and Services, 3.2 percent from 2.8 percent;
3. Recreation, Sport and Culture, 1.9 percent from 1.7 percent; and
4. Clothing and Footwear, 2.9 percent from 2.8 percent.

In contrast, Furnishings, Household Equipment and Routine Household Maintenance registered lower inflation rates with 1.4 percent from 1.6 percent of the previous month. 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 eased further to -7.0 percent in May 2025 from -6.5 percent in the previous month. In May 2024, food inflation was higher at 10.0 percent. (as shown in Table D)

The deceleration of food inflation in May 2025 was primarily brought about by the slower inflation rate of Oils and Fats at -3.4 percent during the month from 0.6 percent in April 2025. This was followed by the faster year-on-year decline of Corn at -23.7 percent during the month from -20.3 percent in April 2025.

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

1. Sugar, Confectionery and Desserts, 3.5 percent from 5.8 percent;
2. Cereals (ND), -18.7 percent from -17.3 percent;
3. Meat and other parts of slaughtered land animals, 5.9 percent from 7.1 percent
4. Vegetables, tubers, plantains, cooking bananas and pulses, -0.5 percent from 0.5 percent; 
5. Flour, Bread and Other Bakery Products, Pasta, and Other Cereals, 0.5 percent from 0.6 percent; and
6. Ready-made food and other food products N.E.C, 3.0 percent from 3.7 percent.

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

1. Fruits and Nuts, 7.5 percent from 5.6 percent;
2. Milk, other dairy products and eggs, 4.8 percent from 3.5 percent; and
3. Fish and Other Seafoods, -12.3 percent from -13.1 percent. (as shown in Table D)

In May 2025, a mixed inflation trend was observed across all provinces and the highly urbanized city in the Davao Region, compared to April 2025. Davao City, Davao de Oro, Davao Occidental, and Davao del Norte recorded lower inflation rates, while Davao Oriental maintained the same rate as the previous month. Conversely, Davao del Sur experienced a slight increase in its inflation rate. Davao Oriental reported the lowest inflation 

rate at -3.3 percent, whereas Davao City had the highest rate at 1.4 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 May 2025, the purchasing power of the peso (PPP) in Davao Oriental remained at 0.79, indicating that PhP 1.00 in 2018 is now equivalent to PhP0.79. The PPP was higher than in May 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:

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