DAVAO CITY — Davao City emerged as the most economically stable area in the Davao Region in April 2026, posting the lowest inflation rate amid surging fuel prices and rising costs of basic commodities brought about by the ongoing global oil crisis, according to the latest data from the Philippine Statistics Authority (PSA) released earlier this week.
Inflation Comparison
While inflation accelerated across Mindanao and the rest of the country, Davao City recorded a 7.0 percent inflation rate in April, lower than the national overall inflation rate of 7.2 percent and the Davao Region’s overall inflation rate of 8.9 percent. It was significantly below the double-digit inflation levels experienced in several neighboring provinces. The figure underscored the city’s relative resilience despite mounting pressure on transportation, food supply, and utility costs that have strained both businesses and households in recent months.
Provincial Inflation Rates
Among the provinces in the region, Davao de Oro posted the highest inflation rate at 11.9 percent, followed by Davao Occidental at 11.8 percent, Davao Oriental at 11.5 percent, Davao del Sur at 10.5 percent, and Davao del Norte at 9.6 percent. Economists said provinces with heavier dependence on long-haul transportation and limited access to major trading hubs were more vulnerable to rising fuel and logistics costs.
Economic Resilience Factors
PSA noted that Davao City’s position as the region’s primary commercial and logistics center helped cushion the impact of inflation compared to smaller provincial economies. The city benefits from stronger supply chains, larger wholesale markets, better port connectivity, and a more diversified business sector, allowing goods and services to circulate more efficiently even during periods of economic disruption.
Despite posting the lowest inflation rate in the region, Davao City still experienced significant increases in consumer prices, particularly in food and transport.
Key Contributors to Inflation
PSA data identified food and non-alcoholic beverages as the biggest contributor to inflation in the city, accounting for 42.2 percent of the overall increase in prices. Transport ranked second with a 26.5 percent share, while housing, water, electricity, gas, and other fuels contributed 18.3 percent.
Food inflation more than doubled in April, increasing from 3.0 percent in March to 7.8 percent. Prices of cereals and cereal products, including rice and flour-based goods, rose sharply from 4.8 percent to 16.1 percent due to higher importation costs and increasing freight charges linked to rising fuel prices.
Local retailers and market vendors have also started adjusting prices of essential commodities to cope with increased operating expenses, including transportation and storage costs. Several small businesses in the food sector said they have begun reducing profit margins or limiting supply purchases to avoid passing the full burden onto consumers.
Transport and Fuel Costs
Transport costs also surged as global oil prices continued to rise amid geopolitical tensions and supply concerns in the international market. Inflation in the transport sector climbed to 18.6 percent in April from 13 percent in March.
Under this category, gasoline inflation jumped from 42.5 percent to 63.2 percent, while diesel inflation surged dramatically from 84.3 percent to 123.6 percent. The spike in diesel prices has heavily affected public transportation operators, cargo delivery services, and businesses dependent on logistics operations.
Business groups have warned that sustained increases in fuel prices could further slow consumer spending and force enterprises to increase prices of goods and services in the coming months if oil prices remain elevated.
Housing and Energy
Meanwhile, inflation in housing, water, electricity, gas, and other fuels slightly increased from 6 percent in March to 6.3 percent in April. Gas prices alone registered a steep increase, climbing from 0.3 percent to 46.3 percent, affecting restaurants, food establishments, and households reliant on liquefied petroleum gas (LPG).
National Context
Nationally, inflation rose to 7.2 percent in April from 4.1 percent in March, reflecting one of the sharpest monthly increases recorded in recent years as the oil crisis continued to ripple across global economies.
Despite the worsening inflation environment, Davao City’s comparatively lower inflation rate provided a measure of stability for local businesses and consumers, reinforcing its role as one of Mindanao’s key economic centers amid continuing market uncertainties.
