DAVAO Region saw an increase in its year-on-year headline inflation rate, rising to 0.6 percent in June 2025 from 0.2 percent in May 2025. However, this current rate remains significantly lower than the 4.3 percent recorded for the region in June 2024.
The primary driver behind the uptrend in Davao Region's overall inflation in June 2025 was a faster annual increment in the index of Housing, Water, Electricity, Gas and Other Fuels, which increased to 1.8 percent from 0.1 percent.
Additionally, a slower price decline in the Transport commodity group, moving from -3.5 percent to -1.7 percent, contributed to the rise.
Education Services also played a significant role, showing a faster year-on-year increase at 11.7 percent from 7.8 percent.
Also contributing to the inflation uptrend were observed in the following commodity groups:
• Clothing and Footwear, at 2.7 percent from 2.5 percent.
• Furnishings, Household Equipment, and Routine Household Maintenance, at 3.2 percent from 3.1 percent.
• Health, at 3.2 percent from 2.9 percent.
• Recreation, Sport, and Culture, at 5.4 percent from 4.7 percent.
• Restaurants and Accommodation Services, at 3.6 percent from 3.0 percent.
• Personal Care, and Miscellaneous Goods and Services, at 3.7 percent from 3.5 percent.
Conversely, slower annual increments were noted in Food and Non-Alcoholic Beverages, which saw a decline to -1.4 percent from -1.1 percent, and Information and Communication, decreasing to 0.9 percent from 1.0 percent. Alcoholic Beverages and Tobacco maintained its previous month’s inflation rate at 4.5 percent, as did Financial Services at 0.0 percent.
Davao’s food inflation trends downward
The region’s food inflation recorded a faster price decline at -1.9 percent in June 2025, compared to -1.4 percent in May 2025.
This marks a significant change from June 2024, when food inflation was notably higher at 7.8 percent. The main factor behind this downtrend in food inflation was the Cereals and Cereal Products group, which experienced a sharp decline of -12.3 percent compared to -10.7 percent in the prior month. Specific declines were seen in Rice (-15.9%) and Corn (-16.0%).
Other food commodity groups that recorded slower inflation in June 2025 included:
• Meat and Other Parts of Slaughtered Land Animals, at 5.2 percent from 5.6 percent.
• Fruits and Nuts, at 2.3 percent from 4.1 percent.
• Ready-made Food and Other Food Products n.e.c., at 3.1 percent from 4.8 percent.
However, some food categories showed faster annual growth rates:
• Fish and Other Seafood, at 5.3 percent from 3.5 percent.
• Milk, Other Dairy Products, and Eggs, at 5.9 percent from 5.4 percent.
Provincial overview
Within Davao Region, Davao City's inflation rate rose to 2 percent in June 2025 from 1.4 percent in May 2025. Davao del Norte's rate increased to 0.4 percent from -0.6 percent, while Davao del Sur saw a slight decrease to 0.7 percent from 0.8 percent. Davao Oriental continued to report negative inflation at -2.1 percent. Davao de Oro and Davao Occidental also remained in negative inflation territory, at -1.5 percent and -3.5 percent, respectively. CEA