DAVAO DEL SUR

1.    Headline Inflation

In March 2025, the headline inflation of Davao del Sur dropped to 0.3 percent, marking a 0.4 percentage points decrease from the 0.7 percent inflation rate recorded in February 2025. The current inflation rate was 7.5 percentage points lower when compared to March 2024 at 7.8 percent inflation. At the same time, the province's average inflation rate stood at 1.3 percent. (See Table A and Figure 1).

1.1.    Main Drivers Contributing to the Movement of Headline Inflation

The decline in headline inflation of Davao del Sur was attributed to the decrease in the index of (a) Housing, Water, Electricity, Gas, and Other Fuels at 1.1 percent from 2.1 percent the previous month. The second largest contributor to the decrease in inflation was (b) Transport at negative 5.3 percent compared to the previous month at negative 4.0 percent. There was also a decrease in the inflation of (c) Restaurants and Accommodation Services with 0.7 percent inflation from 1.7 percent in the previous month.

Additionally, the following commodity groups recorded a decrease in the inflation of prices:

•    Furnishings, Household Equipment, and Routine Household Maintenance at 2.7 percent, from 4.4 percent in the previous month;
•    Personal Care, and Miscellaneous Goods and Services at 3.1 percent, from 4.2 percent in the previous month;
•    Clothing and Footwear at 2.4 percent, from 3.1 percent in the previous month;
•    Health at 1.8 percent, from 2.3 percent in the previous month;
•    Recreation, Sport and Culture at 3.9 percent, from 4.0 percent in the previous month.

On the other hand, increased movement of prices was observed in the commodity group of Alcoholic Beverages and Tobacco at 7.7 percent from         7.4 percent in the previous month. Also, the commodity group of Information and Communication with 6.5 percent inflation from 2.9 percent in February 2025.

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

•    Education Services, 4.9 percent; 
•    Financial Services, 0.0 percent; and
•    Food and Non-Alcoholic Beverages, negative 0.8 percent.
 

2.    Food Inflation

In terms by food group, the inflation rate increased to negative 1.0 percent from negative 1.2 percent in the previous month. The increased inflation of attributed by         a) Fish and other seafood at 5.7 percent from 3.1 percent in the previous month. The second contributor of the increase in price was b) Milk, other dairy products and eggs with 5.9 percent inflation from 2.9 percent in the previous month. This was followed by the food group of c) Vegetables, tubers, plantains, cooking bananas and pulses at negative 3.9 percent from negative 7.2 percent in the previous month. Similar price movement was recorded for d) Meat and other parts of slaughtered land animals at 7.8 percent, from 6.5 percent in the last month. And, the food group of e) Oils and fats at 34.5 percent, from 31.5 percent in February 2025.

In contrast, lower inflation was observed in the following food commodity groups:
•    Cereals and cereal products with negative 12.4 percent, from negative 9.6 percent in the previous month;
•    Fruits and nuts with 5.6 percent, from 5.9 percent in the previous month; 
•    Sugar, confectionery and desserts with 1.6 percent, from 6.2 percent in the previous month; and
•    Ready-made food and other food products with 2.2 percent, from 3.4 percent in the previous month.

3.    Purchasing Power of Peso

The Purchasing Power of Peso (PPP) in Davao del Sur for March 2025 remained at 0.76, same PPP as the previous month, as shown in Figure 2. This means that to buy the same set of goods and services worth PhP100.00 in 2018, PhP131.5 would be the needed amount in March 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 yearon-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