Davao sees slower price decline for low-income households in June 2025

Inflation rate for bottom 30 percent income households in Davao in June 2025 compared to May 2025
Economist sees inflation falling below 2% in March
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THE inflation rate for the bottom 30 percent income households in the Davao Region has recorded a slower price decline of -1.9 percent in June 2025, from -2.0 percent in May 2025, based on the latest report released by the Philippine Statistics Authority (PSA). 

In contrast, inflation during the same month last year stood at a much higher 4.8 percent.

The inflation rate for the bottom 30 percent income households in the Davao Region has recorded a slower price decline of -1.9 percent in June 2025, from -2.0 percent in May 2025, based on the latest report released by the Philippine Statistics Authority (PSA).
The inflation rate for the bottom 30 percent income households in the Davao Region has recorded a slower price decline of -1.9 percent in June 2025, from -2.0 percent in May 2025, based on the latest report released by the Philippine Statistics Authority (PSA). PSA

The PSA said the uptick was driven by faster annual increases in the prices of several essential goods and services. 

Among these were Housing, Water, Electricity, Gas, and other Fuels, which posted an inflation rate of 0.8 percent in June from minus 0.9 percent in May. 

The Transport index also improved to minus 1.3 percent from minus 3.0 percent, while Restaurants and Accommodation Services increased to 5.2 percent from 5.0 percent. 

These gains reflect higher household spending on basic utilities, mobility, and food services.

Other commodity groups that showed faster price movements in June include Alcoholic Beverages and Tobacco at 4.5 percent from 4.4 percent; Health at 4.1 percent from 4.0 percent; Recreation, Sport, and Culture at 8.0 percent from 7.1 percent; and Education Services at 3.7 percent from 2.7 percent. These categories highlight the rising costs of wellness, leisure, and education among low-income households.

However, several commodity groups registered slower or declining inflation. 

Food and Non-Alcoholic Beverages, which make up a large portion of household expenditures, saw a steeper deflation at minus 4.8 percent from minus 4.4 percent. Other declines were noted in Clothing and Footwear at 2.4 percent from 2.7 percent; Furnishings and Household Maintenance at 3.4 percent from 3.7 percent; Information and Communication at 1.6 percent from 1.8 percent; and Personal Care and Miscellaneous Goods and Services at 3.2 percent from 3.3 percent. Financial Services remained stable at 0.0 percent.

At the provincial level, Davao Occidental recorded the steepest drop in prices at minus 6.2 percent, followed by Davao Oriental at minus 3.8 percent, Davao de Oro at minus 2.3 percent, and Davao del Norte at minus 0.8 percent. 

Davao del Sur saw a minor deflation at minus 0.5 percent. 

Davao City, meanwhile, bucked the trend with a positive inflation rate of 0.7 percent, indicating a slight increase in consumer prices.

On the national scale, the inflation rate for the same income group decreased to minus 0.4 percent in June from 0.0 percent in May. 

Among all 18 regions, the National Capital Region (NCR) registered the highest inflation rate at 2.3 percent, followed by Ilocos Region at 1.8 percent, and Calabarzon at 1.6 percent. 

Central Visayas posted the lowest inflation rate at minus 3.0 percent, while Davao Region tied with Northern Mindanao at minus 1.9 percent.

Despite the continuing deflation, the year-to-date inflation for the Davao Region from January to June 2025 stands at minus 1.3 percent compared to the same period last year, reflecting persistent price drops in several key commodities. 

The PSA emphasized that the Consumer Price Index (CPI) for the bottom 30 percent income households is especially important in tracking the cost of living for the most vulnerable segments of the population.

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