THE Davao Region slipped into deflation in July 2025, with overall consumer prices falling 0.4 percent from 0.6 percent in June, as lower food, housing, and utility costs pushed prices down, the Philippine Statistics Authority (PSA) reported.
The decline stands in sharp contrast to the 5.1 percent inflation rate recorded in July last year.
The PSA said the drop was largely driven by faster price declines in food and non-alcoholic beverages, which slid 2.4 percent year-on-year, and a reversal in housing, water, electricity, gas, and other fuels, which fell one percent after a 1.8 percent uptick in June.
Food inflation deepened to -2.8 percent in July from -1.9 percent in June, with cereals and cereal products, including rice and corn, posting double-digit declines of 13.1 percent and 14.4 percent, respectively. Vegetable prices also fell sharply by 5.8 percent, while fruits and nuts saw slower increases.
Despite the overall downtrend, some food items bucked the trend: oils and fats surged 17.4 percent, milk and other dairy products rose 6.5 percent, and sugar and confectionery prices inched up by 0.1 percent after months of decline.
Inflation for alcoholic beverages and tobacco eased to 4.2 percent, clothing and footwear slowed to 2.4 percent, and transport costs dropped two percent.
Education services still posted double-digit inflation at 10.4 percent, though slower than June’s 11.7 percent.
Health services, information and communication, and personal care items posted slightly faster price increases than in the previous month.
Deflation was widespread in the region, with Davao de Oro posting the steepest drop at -2.1 percent, followed by Davao Occidental (-2.4 percent) and Davao Oriental (-1.8 percent). Davao del Norte recorded -1.3 percent, while Davao City saw a mild 0.6 percent uptick in consumer prices. Davao del Sur also posted 0.6 percent inflation.
Nationwide, inflation eased to 0.9 percent in July from 1.4 percent in June. Davao Region joined Northern Mindanao (-0.6 percent), Soccsksargen (-1.3 percent), and Barmm (-1.7 percent) among the regions experiencing deflation. The Ilocos Region recorded the highest inflation at 1.9 percent.
The drop in prices could provide short-term relief for households struggling with high living costs over the past two years.
For businesses, especially in retail and food services, lower commodity prices may ease input costs but could also signal weaker consumer demand in some sectors. MLSA