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Rising prices

by Nova Mae Francas
  • Electricity costs push Davao Region’s June 2026 inflation rate to 8.1%

THE INFLATION rate in Davao Region accelerated to 8.1 percent in June 2026, up from 7.8 percent in May, the Philippine Statistics Authority (PSA) XI reported Tuesday.

Baby Jean P. Alid, PSA XI officer-in-charge, said the region’s average inflation for January to June 2026 stood at 6.2%, based on the year-on-year change in the average consumer price index against the same period in 2025.

“The main reason for higher inflation year on year was the year-on-year faster increase of housing, water, electricity, gas and other fuels,” Alid said during the online report.

This commodity group posted an 11% inflation rate from 7% in May, and accounted for 97% of the month’s inflation acceleration.

Alid said the main contributor to the increase was due to a steep rise in electricity rates, which posted a 24.8% inflation rate in June, up from just 3.2% in May.

While the monthly inflation rates eased slightly from 8.9% in April, it is higher than the  3.1% in January and 3.3% in February, and 5.9% in March.

The food and non-alcoholic beverages remained the largest contributor to overall inflation, posting an 8.7% rate and accounting for 46.7% of the total. 

Within this group, cereals and cereal products registered 17.9%, particularly rice; fish and other seafood posted 13.0 percent, and vegetables and tubers climbed to 22.3 percent.

The housing, water, electricity, gas, and other fuels group followed, contributing 25.5 percent to overall inflation. 

Aside from electricity, the LPG prices rose 30%, though this was a slowdown from May’s 36.9%, while rentals slightly increased to 5.2% from 5.1.

Transport ranked third among major contributors, with a 12.6% inflation rate representing a 14.5% share overall.

While there is a slowdown in the rate, the main contributor to the transport was the gasoline prices, which posted 35.9 percent in June, down from 48.2 percent in May, and diesel prices with 42.4 percent, also a slowdown from May’s 60.5 percent.

The five main commodities that contributed to the region’s inflation included rice, electricity, gasoline, rentals, and other pelagic fish.

Rice contributed the highest to the inflation, which posted a 21.2% inflation rate in June, slightly down from 22.1^ in May. 

Electricity followed as the second-largest contributor, jumping to 24.8% from 3.2% in May, while gasoline ranked third, contributing 0.9 percentage points despite its rate slowing to 35.9% from 48.2%. 

Additionally, rentals and other pelagic fish posted 5.2% and 16%, respectively.

Among Davao Region’s six provinces and highly urbanized city, Davao Occidental recorded the highest inflation rate at 11.5% in June, up from 11.2% in May. 

Davao City posted the lowest inflation rate in the region at 6.2%, though this was an increase from 5.7% in May.

Davao del Norte’s inflation rose to 8.7% from 8.3%, while Davao del Sur eased slightly to 9.2% from 9.3%. Meanwhile, Davao Oriental declined to 9.9% from 10.5%, and Davao de Oro slowed to 11.4% from 11.5%.

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