DAVAO DEL SUR

1.    Headline Inflation

In May 2025, Davao del Sur’s headline inflation increased to 0.8 percent, reflecting a 0.3 percentage point higher from the April 2025 inflation rate of 0.5 percent. Notably, the current inflation rate was 6.3 percentage points lower than the May 2024 inflation rate at 7.1 percent. At the same time, the province's average inflation rate is 1.1 percent. (See Table A and Figure 1).

1.1.    Main Drivers Contributing to the Movement of Headline Inflation

Among the major commodity groups, the increased headline inflation in May 2025 was primarily brought about by an increase in the index of a) Housing, Water, Electricity, Gas, and Other Fuels at 2.4 percent, from 1.2 percent in the previous month. Also contributing to the province’s increasing trend of headline inflation was b) Food and Non-Alcoholic Beverages at negative 0.1 percent, from negative 0.4 percent in the previous month. The third major contributor to the increased inflation was c) Restaurants and Accommodation Services at 1.1 percent, compared to 0.7 percent in the previous month.

Additionally, the increased inflate rate was also observed in the following commodity groups:

d)    Personal Care, and Miscellaneous Goods and Services at 3.0 percent from   2.7 percent in the previous month; and
e)    Recreation, Sport and Culture at 3.9 percent, from 3.8 percent in the previous month.

On the other hand, a decreasing movement of prices was observed in the province for the following commodity groups:

a)    Alcoholic Beverages and Tobacco at 6.4 percent, from 7.6 percent in the previous month;
b)    Furnishings, Household Equipment and Routine Household Maintenance at 3.4 percent, from 3.5 percent in the previous month; and
c)    Transport at negative 6.2 percent, from negative 6.1 percent.

Meanwhile, compared to the annual rates of the previous month, the following commodity group maintained the same rate:

a)    Information and Communication at 7.4 percent;
b)    Education Services at 4.9 percent; and 
c)    Clothing and Footwear at 2.6 percent;
d)    Health at 2.1 percent;
e)    Financial Services at 0.0 percent.
 

2.    Food Inflation

Meanwhile, the province’s food inflation increased to a negative 0.3 percent in May 2025 inflation rate from negative 0.7 percent in May 2024 inflation rate. The increased food inflate rate was due to the following: a) Cereals and cereal products at negative 11.5 percent from negative 12.7 percent in the previous month. This was followed by b) Ready-made food and other food products with 1.9 percent, from 1.4 percent in the previous month. Also, the increased food inflation rate was recorded for c) Oils and fats with 45.0 percent from 44.1 percent in the previous month, d) Milk, other dairy products and eggs, 9.9 percent from 8.0 percent in April 2025, and e) Fish and other seafoods, increased to 6.0 percent from 5.6 percent in April 2025.

In contrast, decreased inflation was observed in the following food commodity groups:
(a)    Vegetables, tubers, plantains, cooking bananas and pulses, negative 4.3  percent from negative 3.7 percent;
(b)    Sugar, confectionery and desserts, with negative 1.7 percent from negative 0.4 percent;
(c)    Fruits and nuts, 9.2 percent from 10.2 percent; and
(d)    Meat and other parts of slaughtered land animals, 6.7 percent from 7.9 percent.

3.    Purchasing Power of Peso

The Purchasing Power of Peso (PPP) in Davao del Sur for May 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 Php 100.00 in 2018, Php 131.0 would be needed in May 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