1. Headline Inflation

Zamboanga del Sur’s headline inflation or overall inflation eased to 0.2 percent in February 2025 from 1.6 percent in January 2025. In February 2024, the inflation rate was higher at 3.1 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Downtrend of the Headline Inflation

The downtrend in the overall inflation in February 2025 was primarily brought about by the heavily-weighted food and non-alcoholic beverages which recorded an annual decline of 1.6 percent during the month from 1.2 percent annual increase in the previous month. Also contributing to the downtrend was transport with an annual decline of 2.0 percent during the month from 2.6 percent annual increase in January 2025. In addition, the restaurants and accommodation services recorded a slower annual increase of 2.8 percent in February 2025 from 3.9 percent in the previous month.

In contrast, higher annual increments were noted in the indices of the following commodity groups during the month:

a. Alcoholic beverages and tobacco, 6.5 percent from 5.9 percent;  
b. Clothing and footwear, 1.8 percent from 1.6 percent; 
c. Housing, water, electricity, gas and other fuels, 3.7 percent from 0.9 percent; 
d. Health, 3.3 percent from 1.7 percent; 
e. Recreation, sport and culture, 3.1 percent from 2.4 percent; and 
f. Personal care, and miscellaneous goods and services, 3.1 percent from 2.8 percent.

Moreover, slower annual decrease was observed in the index of information and communication at 0.6 percent during the month from 6.0 percent annual decrement in January 2025. 

The indices of furnishings, household equipment and routine household maintenance, education services, and 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 February 2025 overall inflation were the following:

a. Housing, water, electricity, gas and other fuels with 215.4 percent share or 0.43 percentage point;
b. Personal care, and miscellaneous goods and services with 62.8 percent share or 0.13 percentage point; and
c. Furnishings, household equipment and routine household maintenance with 60.8 percent share or 0.12 percentage point.

2.0 Food Inflation

Food inflation in the province declined to 1.6 percent in February 2025 from an annual increase of 1.2 percent in the previous month.

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in February 2025 was primarily brought about by the faster year-on-year decline in the index of cereals and cereal products at 10.1 percent in February 2025 from 5.1 percent annual decline in the previous month.

In addition, lower inflation rates during the month were noted in the following food groups:

a. Fish and other seafood, 3.4 percent from 6.1 percent; and
b. Vegetables, tubers, plantains, cooking bananas and pulses, 0.4 percent from 5.8 percent.

Moreover, faster annual decrease was observed in the index of oils and fats at 4.0 percent during the month from 3.3 percent annual decline in January 2025. 

In contrast, higher annual increases were noted in the following food groups:

a. Meat and other parts of slaughtered land animals, 5.0 percent from 4.9 percent;
b. Milk, other dairy products and eggs, 3.6 percent from 1.1 percent;
c. Fruits and nuts, 14.4 percent from 12.1 percent;
d. Sugar, confectionery and desserts, 2.4 percent from 1.6 percent; and
e. Ready-made food and other food products, 4.2 percent from 3.2 percent.

2.2 Main Contributors to the Food Inflation

Food inflation shared -462.3 percent or -0.92 percentage point to the overall inflation in February 2025. The top three food groups in terms of contribution to food inflation during the month were the following:

a. Cereals and cereal products with 194.6 percent share or -3.70 percentage points;
b. Oils and fats with 2.3 percent share or -0.04 percentage point; and
c. Vegetables, tubers, plantains, cooking bananas and pulses with -1.3 percent share or 0.03 percentage point. 

In Zamboanga del Sur, the purchasing power of the peso (PPP) in February 2025 is 0.79. This means that a peso in 2018 is worth 79 centavos in February 2025, or the amount of PhP 100.00 in 2018 is equivalent to PhP 79.00 in February 2025. An additional interpretation is that “You will need PhP 125.90 to purchase the same set of goods and services worth PhP 100.00 in 2018.” (Table E)

 DIMNA P. BIENES 
Chief Statistical Specialist