INFLATION accelerated in both Davao City and Davao del Sur in July 2026, with consumer prices rising by 6.8 percent in the city and 9.6 percent in the province, according to the latest data from the Philippine Statistics Authority (PSA).
The July figures showed renewed pressure on consumers in the two areas, although the main drivers of inflation differed. In Davao City, higher costs for housing, water, electricity, gas and other fuels pushed up the overall inflation rate, while Davao del Sur continued to record significant price increases in food, alcoholic beverages and tobacco, housing-related expenses and education.
Data from the PSA Davao del Sur Provincial Statistical Office showed that Davao City's inflation rate increased to 6.8 percent in July from 6.2 percent in June. Its all-items Consumer Price Index (CPI) also edged up to 139.7 from 139.5 in the previous month.
Housing, water, electricity, gas and other fuels emerged as among the major contributors to the increase, with its CPI rising to 130.0 in July from 128.5 in June. Meanwhile, the CPI for food and non-alcoholic beverages slightly declined to 144.9 from 145.2, indicating a modest easing in the price index for the commodity group.
The purchasing power of the peso in Davao City remained at ₱0.72 in July, based on 2018 prices, unchanged from the previous month.
Despite rising prices, Davao City's labor market continued to show improvement. Provisional figures for 2025 placed the employment rate at 96.2 percent, higher than the 95.7 percent recorded in 2024. The number of employed persons reached about 860,000, while the unemployment rate declined to 3.8 percent from 4.3 percent a year earlier.
The city's economy also maintained its expansion. Based on Provincial Product Accounts data at constant 2018 prices, Davao City's Gross City Domestic Product reached ₱574.72 billion in 2024, up from ₱532.54 billion in 2023.
Construction activity posted a strong start in 2026, with 339 approved building permits in the first quarter carrying a total value of ₱4.27 billion. This was a significant increase from the ₱1.60 billion recorded from 366 permits in the fourth quarter of 2025, with residential projects accounting for about ₱3.10 billion of the first-quarter construction value.
Agricultural production also remained active, with palay output reaching 3,688 metric tons and corn production totaling 4,722.83 metric tons in the second quarter of 2026. The city's chicken inventory expanded to 3.52 million birds in July from 2.68 million in April, supported by increases in layer and broiler stocks.
Meanwhile, inflation in Davao del Sur accelerated to 9.6 percent in July from 9.2 percent in June. The province's all-items CPI increased to 143.1 from 142.6, reflecting continued increases in the cost of goods and services.
The highest CPI among major commodity groups was recorded in alcoholic beverages and tobacco at 198.8. Food and non-alcoholic beverages also increased to 148.2 in July from 147.2 in June, while the CPI for education services rose to 127.5 from 120.6 in May amid adjustments in education-related expenses.
The purchasing power of the peso in Davao del Sur remained at ₱0.70 relative to the 2018 base year.
The province nevertheless maintained a strong labor market. Provisional 2025 data showed an employment rate of 98.5 percent, equivalent to about 367,000 employed individuals, while the unemployment rate stood at 1.5 percent, or approximately 6,000 persons.
The labor force participation rate reached 69.9 percent out of a working-age population of around 533,000. Underemployment also improved to 3.5 percent, or about 13,000 individuals, from 4.1 percent in 2024.
Davao del Sur's economy reached ₱115.85 billion in 2024 at constant 2018 prices, expanding from ₱110.46 billion in 2023.
In the first quarter of 2026, the province recorded 154 approved building permits valued at ₱207.67 million, while non-residential developments accounted for a significant portion of construction activity.
Agricultural production in the second quarter reached 12,259.49 metric tons for palay and 9,951.22 metric tons for corn. Poultry production also expanded, with the province's total chicken inventory reaching 6.52 million birds in July, more than double the 2.78 million recorded during the same month in 2025. Broilers accounted for 4.21 million birds, while native and improved chicken breeds totaled 2.16 million.
The latest PSA data showed that while Davao City and Davao del Sur continued to register economic expansion, strong employment, and growing activity in construction and agriculture, households in both areas faced increasing pressure from rising prices, particularly for essential goods and services. DEF
