CITY OF DAVAO

1.    Headline Inflation

In January 2025, the headline inflation rate in Davao City increased at 2.7 percent, reflecting a 0.1 percentage points increase from the December 2024 rate of 2.6 percent. Notably, the current inflation rate was 2.9 percentage points lower than the figure reported in January 2024 at 5.6 percent. (Table A and Figure 1).

1.1 Main Drivers Contributing to the Increased Headline Inflation

Among the commodity groups, the higher headline inflation in January 2025 was primarily brought about by the increase in the index of a) Food and Non-Alcoholic Beverages at 3.8 percent, from 3.2 percent in the previous month. Also contributing to the city’s increasing trend of headline inflation was b) Transport at 1.5 percent, from 0.4 percent in December 2024. The third major contributor of the increased inflation was c) Recreation, Sport, and Culture at 4.4 percent, from 4.0 percent.

Meanwhile, decreasing movement of prices was observed in the city of the following commodity groups: 

a)    Housing, Water, Electricity, Gas, and Other Fuels at 1.0 percent, from 1.7 percent;
b)    Personal Care, and Miscellaneous Goods and Services at 3.7 percent, from 3.8 percent.
c)    Alcoholic Beverages and Tobacco at 4.9 percent, from 5.3 percent;
d)    Clothing and Footwear at 3.4 percent, from 3.6 percent;
e)    Furnishings, Household Equipment, and Routine Household Maintenance at 3.4 percent, from 3.7 percent;
f)    Health at 1.9 percent, from 2.4 percent; and
g)    Information and Communication at negative 0.5 percent, from negative 0.2 percent.

On the other hand, the inflation rates for the rest of the commodity groups remained unchanged.
 

2.    Food Inflation

Meanwhile, the city’s food inflation increased to 3.8 percent in January 2025 from 3.1 percent in the previous month. The increase was mainly due to a) Fish and other seafood at 9.8 percent, from 7.3 percent in the previous month. This was followed by b) Meat and other parts of slaughtered land animals at 3.9 percent, from 2.9 percent in the previous month; and c) Vegetables, tubers, plantains, cooking bananas and pulses at 11.0 percent, from 5.3 percent in the previous month.

Higher year-on-year inflation rates were also observed in the following food groups:

•    Milk, other dairy products, and eggs at 0.2 percent, from 0.1 percent; and
•    Sugar, confectionery, and desserts at negative 1.8 percent, from negative 2.0 percent.

In contrast, decreasing rates in food inflation were observed in the following food commodities:
a)    Ready-made food and other food products at 9.5 percent from 10.4 percent; and
b)    Cereals and cereal products at 0.6 percent from 1.7 percent.

On the other hand, the inflation rates for the rest of the food commodity groups remained unchanged.

3.    Purchasing Power of Peso

The Purchasing Power of Peso (PPP) in Davao City for January 2025 remained unchanged at 0.76, same as the previous month’s PPP, as presented in Figure 2. This translates that to purchase the same set of goods and services that cost Php100.00 in 2018, one would require Php132.0 in January 2025.
 

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:

ADELINE G. BATUCAN
(Supervising Statistical Specialist)
Officer-In-Charge
Davao del Sur Provincial Statistical Office