Inflation for the poorest households in the Davao Region fell below zero in 2025, primarily due to a decline in food prices, according to the Philippine Statistics Authority (PSA) Davao Region annual report, furnished to SunStar Davao, Wednesday, March 18, 2026.
The PSA Davao Region reported that the annual average inflation for the bottom 30 percent income households in the region fell to -1.1 percent in 2025, a reversal from 4.3 percent in 2024.
The downturn signals easing price pressures for low-income families, particularly in essential goods, though some sectors still posted increases.
Food prices lead the decline
Food and non-alcoholic beverages, which carry the heaviest weight in household spending, drove the overall slowdown. Inflation for the category dropped to -3.3 percent in 2025 from 7.2 percent in 2024.
Food inflation alone fell even further from 7.4 percent in 2024 to -3.8 percent in 2025, as staple items posted steep declines.
Cereals and cereal products led the drop, plunging to -13.2 percent from 13.8 percent a year earlier. Rice prices, a key driver of household expenses, contracted significantly, helping ease the burden on low-income consumers.
Other food groups also posted slower increases, including fish, fruits, and vegetables, reinforcing the broader easing in food costs.
Mixed price movements across sectors
Despite the overall decline, several commodity groups recorded faster price increases in 2025.
Health-related expenses rose to 4.5 percent, while information and communication climbed to 2.3 percent. Personal care and miscellaneous goods also edged higher.
Meanwhile, transport costs slipped to -0.7 percent, and housing-related expenses remained nearly flat at -0.1 percent, indicating relative stability in utility costs.
Prices for restaurants and accommodation services slowed but still grew at 4.6 percent, reflecting sustained demand in the services sector.
Provincial trends vary
Inflation trends varied across provinces and Davao City.
Davao City posted a 1.0 percent inflation rate, the highest in the region.
Davao del Sur followed at 0.3 percent.
Other provinces recorded deflation, including Davao Occidental at -3.7 percent, the lowest in the region.
The data highlights uneven price dynamics, with urban centers showing modest increases while several provinces experienced declining prices.
National context
At the national level, inflation for the bottom 30 percent income households also slowed sharply to 0.3 percent in 2025, down from 4.2 percent in 2024.
Among regions, the National Capital Region recorded the highest inflation at 2.4 percent, while Soccsksargen posted the lowest at -1.3 percent.
What it means for households
The decline in inflation suggests improved purchasing power for low-income families in the Davao Region, particularly as food prices eased after sharp increases in previous years.
However, the PSA Davao noted that inflation reflects the rate of price change, not absolute price levels. Even with slower or negative inflation, some goods may still cost more than in earlier years.
For many households, the relief from cheaper staples may help offset rising costs in health, personal care, and other essential services—offering a mixed but generally improving economic outlook for the region’s most vulnerable consumers. MLSA WITH PSA DAVAO REPORT