1. Headline Inflation

Zamboanga del Sur’s headline inflation or overall inflation decreased to 3.1 percent in August 2024 from 4.7 percent in July 2024. This brings the province’s average inflation from January 2024 to August 2024 to 3.8 percent. In August 2023, the inflation rate was posted at 5.2 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Downtrend of the Headline Inflation

The downtrend in inflation in August 2024 was primarily influenced by the slower year-on-year increase of food and non-alcoholic beverages at 4.0 percent during the month from 6.4 percent in July 2024. The faster annual decline of transport at 1.6 percent during the month from an annual increase of 5.1 percent in July 2024 also contributed to the downtrend. Moreover, health also contributed to the downtrend as it recorded a slower annual increase of 1.9 percent during the month from 6.3 percent in July 2024. 

In addition, lower annual increments were also noted in the indices of the following commodity groups:

   a. Alcoholic beverages and tobacco, 4.0 percent;  
   b. Clothing and footwear, 2.3 percent. 
   c. Furnishings, household equipment and routine household maintenance, 1.4 percent;  
   d. Information and communication, -4.1 percent. 
   e. Recreation, sport and culture, 2.4 percent;  
   f. Education services, 6.0 percent. 
   g. Restaurants and accommodation services, 5.3 percent; and 
   h. Personal care, and miscellaneous goods and services, 3.7 percent. 

On the contrary, the index of housing, water, electricity, gas and other fuels exhibited a higher annual increase of 2.0 percent during the month from a decline of 2.2 percent in July 2024. 

The index of financial services retained their previous month’s annual increment. (Table C)

1.2 Main Contributors to the Headline Inflation

The top three commodity groups contributing to the August 2024 overall inflation were the following:

   a. Food and non-alcoholic beverages with 73.2 percent share or 2.27 percentage points; 
   b. Housing, water, electricity, gas and other fuels with 8.7 percent share or 0.27 percentage points; and
   c. Restaurants and accommodation services with 7.8 percent share or 0.24 percentage points. 

2.0 Food Inflation

Food inflation in the province decreased to 3.9 percent in August 2024 from 6.4 percent in the previous month.

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in August 2024 was primarily brought about by the slower year-on-year increase in the index of cereals and cereal products at 13.4 percent in August 2024 from an increase of 18.2 percent in the previous month. In addition, fish and other seafood index recorded an annual decline of 11.4 percent from an annual decrease of 6.0 percent. Also contributing to the downtrend of food inflation is the index of ready-made food and other food products at 9.8 percent from 16.2 percent. 

Moreover, lower annual increments were also noted in the indices of sugar, confectionery and desserts (-0.9 percent from 2.6 percent); and milk, other dairy products and eggs (-0.3 percent from 0.0 percent).

On the contrary, higher year-on-year growths were observed in the indices of meat and other parts of slaughtered land animals (1.7 percent from 0.6 percent); oils and fats (-3.5 percent from -11.0 percent); fruits and nuts (16.4 percent from 7.5 percent); and vegetables, tubers, plantains, cooking bananas and pulses (8.5 percent from 5.3 percent). (Table D)

2.2 Main Contributors to the Food Inflation

Food inflation shared 67.8 percent or 2.10 percentage points to the overall inflation in August 2024. The top three food groups in terms of contribution to food inflation during the month were the following:

   a. Cereals and cereal products, which include rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 118.7 percent or 4.63 percentage points;
   b. Vegetables, tubers, plantains, cooking bananas and pulses with 12.9 percent or 0.50 percentage points; and
   c. Fruits and nuts with 11.1 percent or 0.43 percentage points. (Table D)

In Zamboanga del Sur, the purchasing power of the peso (PPP) in August 2024 is 0.79. This means that a peso in 2018 is worth 79 centavos in August 2024, or the amount of PhP 100.00 in 2018 is equivalent to PhP 79.00 in August 2024. An additional interpretation is that “You will need PhP 126.80 to purchase the same set of goods and services worth PhP 100.00 in 2018.” (Table E)

 DIMNA P. BIENES 
(Supervising Statistical Specialist) 
Officer-in-Charge