The Philippine Statistics Authority (PSA) has revealed a stark contrast in inflation patterns across the Davao Region for October, highlighting a growing economic divide between Davao del Sur and Davao City.
While households in Davao del Sur faced accelerating price increases, residents of Davao City experienced a welcome slowdown, painting two very different pictures of the cost of living within the same region.
Davao del Sur: Inflation Picks Up Pace
Data from the PSA Davao del Sur Provincial Statistical Office, presented by OIC Adeline G. Batucukan, shows that the province's headline inflation rate climbed to 1.8 percent in October. This marks a significant increase from the 1.0 percent recorded in September, though it remains well below the 4.3 percent seen in the same month last year.
The primary driver of this uptick was the sector of housing, water, electricity, gas, and other fuels. This category saw a 4.5 percent increase and was responsible for nearly 70 percent of the overall inflation rise. A dramatic swing in electricity prices was a key factor, which jumped by 6.1 percent after a steep -11.6 percent decline in September.
Food and non-alcoholic beverages also contributed to the pressure, even though the overall category was in deflation at -0.9 percent. Specific items pinched family budgets considerably, with fish and seafood inflation surging to 9.5 percent from -2.4 percent, and cereals and cereal products spiking to 15.8 percent.
Other notable increases were seen in alcoholic beverages and tobacco, which posted a 7.1 percent inflation rate, and restaurants and accommodation services, which rose by 3.4 percent.
Davao City: A Welcome Slowdown
Moving in the opposite direction, Davao City saw its inflation rate ease to 1.2 percent in October. This was down from 1.7 percent in September and also lower than the 2.4 percent logged in October of the previous year.
The deceleration was largely due to softer price increases in housing, water, electricity, gas, and other fuels, which rose by a more moderate 1.7 percent. Within this category, electricity inflation eased to 8.3 percent from 12.3 percent, and actual housing rentals stabilized completely, showing a 0.0 percent change.
Price growth also slowed in restaurants and accommodation services to 1.2 percent, while the transport sector saw inflation slip to 0.5 percent, aided by cheaper gasoline and diesel prices.
Core Inflation and Impact on Low-Income Households
The core inflation data, which excludes volatile food and energy items, also showed diverging trends. In Davao del Sur, core inflation was at 4.4 percent, down from 4.6 percent. In Davao City, it was a lower 2.2 percent, decreasing from 2.7 percent.
The figures for the bottom 30 percent of income households reveal how inflation dynamics are affecting the region's most vulnerable families. For Davao City's poorest households, inflation fell sharply to just 0.1 percent, offering significant relief compared to 0.6 percent in September and 2.9 percent a year earlier.
In Davao del Sur, inflation for this low-income group was recorded at 0.7 percent, a figure that, while low, was higher than Davao City's and far below the 5.0 percent rate from the previous year.
The growing gap between the two areas underscores how localized factors—such as electricity rate adjustments, housing costs, and food supply chains—can create vastly different economic conditions even within a single region. Economists suggest that targeted interventions may be necessary to help balance these pressures and support households facing steeper living costs.
