Headline Inflation

The headline inflation rate in the Province of Dinagat Islands decelerate again to -1.5 percent this May 2025 from -1.2 percent in April 2025. This points to a 0.3 percentage drop from the previous month, and a 6.2 percentage point decrease compared to May 2024. The year-to-date average inflation rate stands at -0.9 percent, significantly below the national average of 1.9 percent and the Caraga regional average of 1.0 percent (Table A and Figure 1).

Key Drivers to the Downturn of Inflation to -1.5 percent

The decrease in May 2025 was primarily driven by the slower increase in the average retail prices of Housing, Water, Electricity, Gas and Other Fuels group, which recorded a 0.5 percent inflation rate from 2.5 percent in previous month and contributed 64.4 percent to the overall decrease in provincial inflation. In particular, the slower increase in the retail price of electricity with inflation rate of 2.7 percent from 13.6 percent contributed to this sudden drop in the inflation for this month.

Other contributing commodity groups to the recession of inflation rate for May 2025 include:

1.    Transport: Inflation decline to -5.6 percent from -3.6 percent in previous month, contributing 34.1 percent to the drop which can be traced to the slower price increase of Gasoline noting inflation rate of -12.2 percent from -7.9 percent in April 2025.
2.    Recreation, Sport and Culture: Decreased to 2.0 percent from 2.6 percent and shared about 1.5 percent to the provincial downtrend of inflation this May 2025 due to slower retail prices in restaurants, café and the like-with full-service recording inflation rate of 2.7 percent from 2.8 percent in April 2025.

Despite the overall decrease of the inflation rate in May 2025, some commodity groups registered higher inflation for the month:

1.    Food and Non-alcoholic Beverages: Increased to -3.2 percent from -3.4 percent in April 2025.
2.    Alcoholic Beverages and Tobacco: Increased to 5.5 percent from 5.3 percent.
3.    Clothing and Footwear: Inflation rose to 2.3 percent from 2.2 percent in previous month.
4.    Furnishings, household equipment and routine household maintenance: Inflation improved to 2.6 percent from 2.2 percent in previous month.
5.    Health: Inflation rate rose to -0.8 percent from -1.3 percent from previous month.
6.    Restaurants and Accommodation Services: Slight improvement in the inflation rate is noted this month from 2.6 percent to 2.7 percent.
7.    Personal Care and Miscellaneous Goods and Services: Inflation rate noted to surge up to 0.5 percent from 0.3 percent in April 2025.

Moreover, these were the commodity groups showing a stable inflation rate. Inflation in the following groups remained unchanged:

1.    Education Services: 0.0%
2.    Financial Services: 0.0%
3.    Information and Communication: 0.9%

Top Contributors to the Overall Provincial Inflation Rate of -1.5 percent

The overall inflation rate of -1.5 percent in the Province of Dinagat Islands for May 2025 is the result of weighted contributions from various commodity groups. These groups pushed the inflation rate higher or maintained its negative level, reflecting the relative price changes and consumption patterns across households. The following are the top contributors

1.    Food and Non-Alcoholic Beverages: This group contributes 107.1 percent or 1.61 percentage points to the overall inflation rate which can be pointed out directly to rice which recorded an increase in the inflation rate at -20.8 percent in May 2025 from 21.2 percent in April 2025.
2.    Transport: It contributes about 30.8 percent or 0.46 percentage points, to the total provincial inflation rate. Lower retail prices of gasoline for this month recorded an inflation rate of -12.2 percent from -7.9 percent in previous month.
3.    Health: This commodity group has a contribution of 1.7 percent or 0.03 percentage points to the overall provincial inflation. The fast-increasing prices for medicines, vaccines and other pharmaceutical preparations resulted to an inflation of -1.0 percent this May from -1.6 percent in April 2025.

Food Index

The food index for province rebounded in May 2025, posting slight increase at -4.1 percent, compared to -4.2 percent in April 2025. Several key food subgroups contributed to this gain:

1.    Cereals: This sub-group manifested an increase from -21.0 percent to -20.4 percent inflation rate and contributed 6.67 percentage points to the total provincial food inflation. The increase is attributed to the rise in the average retail prices for rice recording an inflation rate of -20.8 percent this May 2025 from -21.2 percent in April 2025.
2.    Sugar, confectionery and desserts: This subgroup experienced a decrease in the retail price index, with inflation losing to 0.6 percent in May 2025 from 0.8 percent in the previous month. This accounted 0.01percentage points to the total food inflation specifically, cane and beet sugars with inflation rate of 0.4 percent.
3.    Ready-made food and other food products: Prices in this group has shown stable price index, with inflation rate peg at 2.9 percent since April 2025 to present. This contributed to 0.13 percentage points to the overall food inflation. Particularly, salt, condiments and sauces with an inflation rate of 3.3 percent from 2.5 percent in April 2025 was noted to have the highest contribution to the food inflation for this month.

Purchasing Power of the Peso

The Purchasing Power of the Peso (PPP) in Dinagat Islands showed stable value at P0.74 since April 2025.

(Sgd.) GLENNBOY C. LISTON
Chief Statistical Specialist
Dinagat Islands-PO