DAVAO DEL SUR

1.    Headline Inflation

In January 2025, Davao del Sur's headline inflation dropped to 3.0 percent, marking a 0.4 percentage points decrease from the 3.4 percent inflation rate recorded in December 2024. The current inflation rate is 1.8 percentage points lower compared to January 2024. Meanwhile, the province's average inflation rate stood at 3.0 percent. (See Table A and Figure 1).

1.1.    Main Drivers Contributing to the Movement of Headline Inflation

In January 2025, the decline in the headline inflation of Davao del Sur was primarily attributed to the decrease in the index of (a) Housing, Water, Electricity, Gas, and Other Fuels at 5.3 percent from 7.3 percent in the previous month. The second major contributor of the decreased inflation rate was (b) Restaurants and Accommodation Services at 5.9 percent from 7.8 percent in December 2024. This was followed by (c) Personal Care, and Miscellaneous Goods and Services, at 5.6 percent from 5.9 percent.

Also, the following commodities recorded decreased inflation rates in the province:

•    Furnishings, Household Equipment and Routine Household Maintenance at 6.6 percent from 7.2 percent in the previous month; 
•    Clothing and Footwear at 3.8 percent from 4.0 percent in the previous month; and 
•    Health at 3.9 percent from 4.4 percent in the previous month.

On the other hand, higher inflation rates were noted in the following commodity groups: 

•    Food and Non-Alcoholic Beverages at 1.6 percent from 1.5 percent in the previous month;
•    Alcoholic Beverages and Tobacco at 7.8 percent from 6.5 percent in the previous month; 
•    Information and Communication at 1.7 percent from negative 1.0 percent in the previous month; and 
•    Transport at negative 1.1 percent from negative 1.5 percent in the previous month.

Compared to the annual rates of the previous month, the following commodity groups maintained the same rate:

•    Education Services, 4.9 percent;
•    Recreation, Sport and Culture at 4.7 percent; and
•    Financial Services, 0.0 percent.
 

2.    Food Inflation

The food inflation rate in the province increased from 1.3 percent in December 2024 to 1.5 percent in January 2025. The increased food inflation rate was mainly attributed to the following food commodity groups: (a) Fish and other seafood with 9.1 percent, from 8.8 percent in the previous month. This was followed by (b) Vegetables, tubers, plantains, cooking bananas and pulses with 8.8 percent, from a negative 0.1 percent in the previous month. The third food commodity with increased inflation rate was (c) Meat and other parts of slaughtered land animals with 3.2 percent from 2.5 percent in the previous month. Also, (d) Oils and fats with 30.8 percent from 26.5 percent from the previous month. And (e) Sugar, confectionery and desserts with 3.0 percent from 1.9 percent in December 2024.

In contrast, lower inflation was observed in the following food commodity groups:

•    Milk, other dairy products and eggs, 3.8 percent from 6.0 percent;
•    Ready-made food and other food products, 2.9 percent from 3.1 percent;
•    Fruits and nuts, 3.0 percent from 3.3 percent; and
•    Cereals and cereal products, negative 7.2 percent from negative 5.2 percent.

3.    Purchasing Power of Peso

The Purchasing Power of Peso (PPP) in Davao del Sur for January 2025 dropped to 0.76, down from the previous month's PPP of 0.77, as shown in Figure 2. This means that to buy the same set of goods and services worth Php 100.00 in 2018, Php 131.8 would be needed 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 the 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