Table A. Year-on-Year Inflation Rates, 
for the Bottom 30% Income Household, All Items
In Percent
(2018=100)
 

A.    Zamboanga City

1.    Inflation Rate for the Bottom 30% Income Households

The Zamboanga City’s inflation rate for the bottom 30% income bracket accelerated to 7.3 percent in July 2024 from 5.3 percent in June 2024. This was comparatively higher than the inflation rate in July 2023, which posted 3.2 percent. Furthermore, the city’s average inflation from January to July 2024 stood at 5.3 percent. (Table A and Figure 1)

1.1    Main Drivers to the Uptrend of the Inflation Rate for the Bottom 30% Income 
Households

The increase in inflation rate in July 2024 for the bottom 30% income households in Zamboanga City was mainly driven by the higher inflation in the index of Food and Non-alcoholic Beverages, which accelerated to 8.1 percent from 5.4 percent in the previous month.
Additionally, there was a notable acceleration in the annual growth rate of the Housing, Water, Electricity, Gas and other Fuels index at 9.3 percent in July 2024 from 8.0 percent in June 2024. The index for Transport also increased to 4.9 percent from 4.5 percent in the previous month.
Higher increments were also recorded in the following commodity groups:
a)    Furnishings, Household Equipment and Routine Household Maintenance stood at 5.3 percent from 5.2 percent inflation;
b)    Health, 2.4 percent from 1.9 percent;
c)    Recreation, Sport and Culture, 3.1 percent from 2.2 percent; and,
d)    Personal Care, and Miscellaneous Goods and Services at 2.9 percent from 2.7 percent.

Meanwhile, the annual rates for the rest of the commodity groups in Zamboanga City remained consistent with those recorded in the previous month. (Table C)

1.2    Main Contributors to the Inflation Rate for the Bottom 30% Income Households

The top three (3) commodity groups contributing to the July 2024 inflation rate for the bottom 30% were the following:
a)    Food and Non-alcoholic Beverages which stood at 8.1 percent, contributing 65.9 percent share or 4.8 percentage points;
b)    Housing, Water, Electricity, Gas and Other Fuels posted 9.3 percent with 21.8 percent share or 1.6 percentage points; and,
c)    Transport posted 4.9 percent with 4.0 percent share or 0.3 percentage point.

Table B. Year-on-year Inflation Rates for the Bottom 30% Income Households 
in Zamboanga City, All items in Percent
January 2020- July 2024
(2018=100)

Table C. Inflation Rate by Commodity Group for the Bottom 30% Income Households in
ZAMBOANGA CITY 2018=100
 

2.    Food Inflation

The monthly Food inflation for the bottom 30% Income Households in Zamboanga City accelerated to 8.9 percent in July 2024 from 5.9 percent in June 2024. This was comparatively higher than the recorded Food inflation in July 2023, which stood at 3.8 percent.

2.1 Main Drivers to the Uptrend of Food Inflation

The acceleration of Food inflation in July 2024 was primarily driven by a higher year-on-year increase in Cereals and Cereal Products index which stood at 17.0 percent in July 2024 from 14.6 percent in the previous month. Additionally, the categories of Fish and Other Seafood, and Vegetables, tubers, plantains, cooking bananas and pulses (ND) also contributed to the uptrend which posted 0.0 percent from (2.9) percent, and 9.0 percent from 2.2 percent, respectively.

Additionally, the following food groups also recorded to have increased faster during the month:
a)    Meat and other parts of slaughtered land animals (ND) at 3.6 percent from (0.6);
b)    Fruits and nuts (ND), 19.8 percent from 15.4 percent; and,
c)    Ready-made food and other food products n.e.c. (ND) at 17.5 from 16.0 percent.

In addition, the food commodity of Oils and fats remained at a stable inflation rate of (0.1) percent.

2.2 Main Contributors to the Food Inflation

Food inflation contributed 65.7 percent share or 4.8 percentage points to the overall inflation for the Bottom 30% Income Households in Zamboanga City. Moreover, the top three (3) Food groups contributing to the July 2024 food inflation were the following:

a)    Cereals and Cereal Products, contributing 50.4 percent share or 3.7 percentage points;
b)    Vegetables, tubers, plantains, cooking bananas and pulses (ND) with 4.9 percent share or 0.4 percentage points; lastly,
c)    Ready-made food and other food products n.e.c. (ND) with 4.7 percent share or 0.4 percentage points; lastly,
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Note: CPIs and inflation rates for the bottom 30% income households by region and by province and selected city are posted at the PSA website (http://openstat.psa.gov.ph/).

MEWCHUN WS. PAMARAN
Regional Director

MFET/MGCN/agi/kxbl