Davao Experiences Further Decline in Inflation for Poorest Households

Davao: Davao Region's inflation rate for the bottom 30 percent income households declined to -1.9 percent in June from -2.0 percent in May, the regional office of the Philippine Statistics Authority (PSA-11) reported Monday. In its bulletin, PSA-11 noted that the region's inflation rate for this segment was significantly higher in June last year, at 4.8 percent. The downtrend in the June 2025 inflation was primarily due to slower price movements in several key commodity groups.

According to Philippines News Agency, contributing to this decline were lower annual increments in food and non-alcoholic beverages, which fell to -4.8 percent from -4.4 percent; clothing and footwear, declining to 2.4 percent from 2.7 percent; furnishings, household equipment, and routine household maintenance, easing to 3.4 percent from 3.7 percent. Information and communication also decreased to 1.6 percent from 1.8 percent; personal care, and miscellaneous goods and services, which slowed to 3.2 percent from 3.3 percent.

The main contributors to the downtrend of overall food inflation in the region in June were cereals and cereal products, at -16.4 percent from -14.6 percent, and ready-made food and other food products N.E.C. at 1.9 percent from 3.5 percent. Conversely, the PSA-11 reported faster annual price growth in other sectors. The uptrend was notably driven by housing, water, electricity, gas, and other fuels, which saw a positive shift to 0.8 percent from -0.9 percent the previous month; transport, at -1.3 percent from -3.0 percent; restaurants and accommodation services, at 5.2 percent from 5.0 percent.

Moreover, the agency added that the following commodity groups also recorded faster price movements in June 2025 compared to May 2025: alcoholic beverages and tobacco (4.5 percent from 4.4 percent); health (4.1 percent from 4.0 percent); recreation, sport, and culture (8.0 percent from 7.1 percent); education services, (3.7 percent from 2.7 percent).

Commodity groups that recorded faster year-on-year price movements included fish and other seafood (2.2 percent from 0.1 percent); milk, other dairy products and eggs (7.1 percent from 6.2 percent); oils and fats (48.0 percent from 46.7 percent); fruits and nuts (6.6 percent from 6.5 percent); vegetables, tubers, plantains, cooking bananas and pulses (-2.7 percent from -4.7 percent); sugar, confectionery, and desserts (-2.9 percent from -3.4 percent). Meanwhile, financial services maintained their previous month's inflation rate at 0.0 percent.