Headline Inflation

Headline inflation in Zamboanga del Sur slowed down further to 4.9 percent in December 2023 from 5.0 percent in November 2023. This brings the average inflation rate of the province in 2023 to 6.8 percent. In December 2022, inflation rate was higher at 10.5 percent. (Tables A and B, and Figure 1)

The downtrend in the inflation in December 2023 was primarily brought about by the lower year-on-year growth in the index of housing, water, electricity, gas and other fuels at an annual decline of 5.0 percent in December 2023 from an annual decrease of 1.6 percent in the previous month. This was followed by personal care, and miscellaneous goods and services with 5.2 percent inflation during the month from 5.7 percent in November 2023.

Lower annual increments were also noted in the indices of the following commodity groups:

• Clothing and footwear, 3.9 percent;
• Furnishings, household equipment and routine household maintenance, 3.3 percent; and
• Alcoholic beverages and tobacco, 9.1 percent.

On contrary, the indices of the following commodity groups exhibited annual increase:

• Food and non-alcoholic beverages, 7.7 percent;
• Health, 10.8 percent;
• Transport, 1.0 percent; and
• Restaurant and accommodation services, 4.6 percent.
   

The indices of the rest of the commodity groups retained their respective previous month’s annual rates, while financial services index remained at zero percent. (Table C)

Annual Average Inflation Rate

The province’s annual average inflation rate for 2023 stood at 6.8 percent, which was lower than the 2022 annual average inflation rate of 8.7 percent. (Table D)

Compared with their respective annual average inflation rates in 2022, the indices of the following commodity groups recorded higher annual average inflation rates in 2023:

• Alcoholic beverages and tobacco, 6.6 percent from 4.7 percent;
• Clothing and footwear, 3.6 percent from 1.8 percent;
• Health, 8.8 percent from 2.5 percent;
• Recreation, sport and culture, 6.8 percent from 2.7 percent;
• Education services, 1.2 percent from 0.8 percent; and
• Personal care, and miscellaneous goods and services, 5.8 percent from 3.0 percent.
   

On the other hand, slower annual average inflation were observed in the indices of the following commodity groups:

• Food and non-alcoholic beverages, 8.8 percent from 8.9 percent;
• Housing, water, electricity, gas, and other fuels, 2.8 percent from 11.5 percent;
• Furnishings, household equipment and routine household maintenance, 5.3 percent from 6.2 percent;
• Transport, 3.6 percent from 19.1 percent;
• Information and communication, 1.5 percent from 2.6 percent;
• Restaurants and accommodation services, 6.3 percent from 8.2 percent; and
• Financial services, 0.0 percent from 6.8 percent.
   

Food Inflation

Food inflation in the province increased to 7.7 percent in December 2023 from 7.0 percent in November 2023.

The increase of food inflation in December 2023 was mainly brought about by the higher year-on-year growth rate observed in rice at 30.9 percent during the month from 26.6 percent in November 2023. Corn also contributed to the uptrend on food inflation with 10.6 percent in December 2023 from 7.9 percent in the previous month.

In addition, faster annual increments were also recorded in the following commodity groups:

• Flour, bread and other bakery products, pasta products, and other cereals, 6.6 percent from 6.5 percent;
• Fish and other seafood, -4.1 percent from -4.5 percent;
• Fruits and nuts, 20.0 percent from 18.9 percent; and
• Sugar, confectionery and desserts, 4.8 percent from 4.2 percent.
   

Meanwhile, lower annual increment was recorded in the index of meat, and other parts of slaughtered land animals at 2.8 percent in December 2023 from 3.2 percent in the previous month. Also contributing to the downtrend of the food inflation are the milk, other dairy products and eggs, and ready-made food and other food products with a slower inflation rates of 13.5 percent and 8.3 percent, respectively.

In addition, oils and fats recorded faster annual decline at 9.5 percent in December 2023 from an annual decline of 8.7 percent in the previous month. Similarly, vegetables, tubers, plantains, cooking bananas and pulses also recorded an annual decline of 5.6 percent from 1.9 percent. (Table E)

In Zamboanga del Sur, the purchasing power of the peso (PPP) in December 2023 is 0.80. This means that a peso in 2018 is worth 80 centavos in December 2023, or the amount of P100.00 in 2018 is equivalent to P80.00 in December 2023. Additional interpretation is that, “You will need Php124.90 to purchase the same set of goods and services worth P100.00 in 2018.” (Table F)

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