Davao Region inflation dips to 8.7%, but food and fuel keep prices high

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DAVAO CITY  (October 15) — Lower electricity inflation offered Davao Region households some relief in September, but rising fuel and food prices continued to squeeze family budgets as regional inflation eased only slightly to 8.7% from 8.9% in August.

The Philippine Statistics Authority (PSA) XI reported the figures on Oct. 13, attributing the slowdown mainly to easing price pressures in housing, water, electricity, gas and other fuels.

During an online briefing, Baby Jean P. Alid, PSA XI chief administrative officer and officer-in-charge, said inflation in the commodity group fell to 9.5% in September from 11.8% in August, accounting for 89.8% of the overall deceleration.

Electricity inflation dropped sharply to 16.3% from 29.9%. But the slower increase does not mean electricity prices fell outright; they continued to rise, only at a slower rate.

For households already spending more on food, transport and utilities, that distinction matters. The latest figures show that the pressure on living costs remains widespread despite the modest improvement in the headline rate.

Food and transport remain major pressure points

Food and non-alcoholic beverages remained the biggest contributor to regional inflation, accounting for 48.5% of the total.

Inflation in cereals and cereal products slowed to 18.7% from 20.4%, while fish and other seafood inflation accelerated to 17.7% from 16.3%. Vegetables, tubers and similar products also rose faster, reaching 23.2% from 22.8%.

Rice remained the leading individual commodity contributor, accounting for 22.8% of September inflation, although its inflation rate eased to 24.3% from 26% in August.

Gasoline ranked second among individual commodity contributors, with a 12% share, followed by electricity at 7.9%. Other pelagic fish accounted for 7.8% as its inflation accelerated to 23.7% from 20.7%. Rentals ranked fifth, with a 7.4% share.

Transport costs added to the strain. Transport inflation accelerated to 16.8% from 13.3%, while gasoline inflation climbed to 42.5% from 35.2% and diesel inflation rose to 66.5% from 56.2%.

Inflation in other passenger transport by road also accelerated to 4.9% from 2.4%, potentially adding to the burden on commuters and workers who depend on public transport.

Provincial inflation remains uneven

Davao del Sur recorded the region’s highest inflation in September at 11.7%, down from 12.1% in August. Davao City posted the lowest rate at 6.3%, also easing from 6.7%.

Inflation slowed in Davao Oriental to 9.9% from 10.2% and in Davao Occidental to 11.4% from 11.5%.

The trend moved in the opposite direction in Davao de Oro, where inflation accelerated to 11.5% from 10.8%, and in Davao del Norte, where it increased to 10.4% from 10%.

These differences mean households across the region are not experiencing the same degree of price pressure. The higher rates in Davao del Sur, Davao de Oro and Davao del Norte warrant closer attention to the cost of basic goods and services in affected communities.

Price relief remains limited

Davao Region’s average inflation from January to September reached 7%, according to PSA XI. Monthly inflation stood at 3.1% in January and 3.3% in February before climbing to 5.9% in March and peaking at 8.9% in April.

It eased to 7.8% in May but rose again to 8.1% in June, 8.4% in July and 8.9% in August before slipping to 8.7% in September.

The September slowdown is a modest improvement, not a reversal of the region’s cost-of-living pressures. With food accounting for nearly half of overall inflation and fuel costs rising sharply, households may continue to struggle to stretch their incomes across daily necessities.

The figures underscore the need for regional and local authorities to monitor prices of essential goods, strengthen market and supply-chain monitoring, and ensure that eligible low-income families can access available social assistance. Transport and energy costs also require close attention because increases can feed into the prices of food and other basic commodities.

For Davao households, the key question is whether the slowdown will translate into meaningful relief at markets, grocery stores and transport terminals. Until the cost of essentials becomes more manageable, a lower inflation rate alone will do little to ease the pressure on family budgets.

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