Prices of basic goods and services paid by the poorest households in the Davao Region rose faster in December, driven mainly by higher food costs, underscoring the continued pressure on family budgets as 2025 drew to a close.
Data released Thursday by the Philippine Statistics Authority (PSA) showed inflation for the bottom 30 percent of income households in Region XI accelerated to 2.0 percent in December 2025, up from 0.2 percent in November. A year earlier, inflation stood at 1.1 percent.
Inflation measures how fast prices are rising. For families with limited income, even small increases can immediately affect daily spending on food, transportation, and utilities.
Food prices lead the increase
Food and non-alcoholic beverages were the main driver of the December uptick, as prices in this category climbed 1.8 percent, reversing a 1.8 percent decline the previous month. PSA data showed sharper price increases for fish and seafood, vegetables, and fruits.
Fish and other seafood prices jumped 10.5 percent, while vegetables and similar food items rose 5.7 percent. Fruits and nuts also returned to positive territory, posting a 0.9 percent increase.
Rice prices, however, continued to ease, declining 8.0 percent year-on-year in December. This helped temper overall food inflation, even as other staples became more expensive.
Mixed trends
Outside food, price movements were uneven. Inflation for information and communication services, which include mobile and internet services, edged higher to 3.5 percent from 3.3 percent.
Meanwhile, several categories posted slower price growth, easing some pressure on household spending. Housing, water, electricity, gas, and other fuels slowed to 0.2 percent, down from 1.3 percent. Transport inflation also cooled to 1.1 percent from 2.0 percent, reflecting more stable fuel and fare costs.
Health-related expenses remained elevated but eased slightly to 5.9 percent, while restaurant and accommodation services slowed to 2.7 percent.
Varied inflation
Within the region, inflation levels differed by area. Davao City recorded a 2.7 percent inflation rate in December, higher than the regional average. Davao del Sur posted the fastest increase at 3.9 percent, while Davao del Norte logged 1.6 percent.
Other provinces, including Davao de Oro (0.2 percent) and Davao Occidental (1.1 percent), posted much lower rates, reflecting differences in local supply conditions and consumer spending patterns.
How Davao compares nationally
At the national level, inflation for the bottom 30 percent of income households rose to 1.1 percent in December, from 0.2 percent in November, signaling a broader return of price pressures.
Among the country’s regions, Central Visayas recorded the highest inflation at 4.6 percent, while the Bangsamoro Autonomous Region in Muslim Mindanao posted the lowest at -1.2 percent. Davao Region ranked among the higher-inflation areas, alongside Metro Manila (National Capital Region) and Calabarzon.
What inflation means for families
Inflation reflects changes in the purchasing power of the peso — in simple terms, how much a family can buy with the same amount of money. For low-income households, rising food prices often translate quickly into tougher choices at the market.
While December’s inflation remained relatively moderate compared with earlier spikes in recent years, the rebound highlights the importance of stable food supply and price monitoring as families head into 2026. MLSABALAYAN WITH PSA DAVAO REPORT