1. Headline Inflation

Zamboanga del Sur’s headline inflation or overall inflation increased to 4.2 percent in April 2024 from 3.0 percent in March 2024. This brings the province’s average inflation from January 2024 to April 2024 to 3.3 percent. In April 2023, the inflation rate was higher at 8.1 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Uptrend of the Headline Inflation

The uptrend in inflation in April 2024 was primarily influenced by the faster year-on-year increase in the heavily weighted food and non-alcoholic beverages which registered an annual growth of 6.5 percent in April 2024 from an annual rise of 5.0 percent in the previous month. The slower year-on-year decline of housing, water, electricity, gas, and other fuels at 3.6 percent during the month from an annual decrease of 5.9 percent in March 2024 also contributed to the uptrend. Moreover, transport also contributed to the uptrend as it recorded an annual increase of 1.8 percent during the month from an annual rise of 1.1 percent in March 2024. 

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

   a. Restaurant and accommodation services, 4.6 percent; 
   b. Personal care and other miscellaneous goods and services, 4.5 percent; and
   c. Clothing and footwear, 3.7 percent. 

In contrast, four commodity groups registered higher inflation rates during the month:

   a. Alcoholic beverages and tobacco, 9.4 percent from 9.6 percent; 
   b. Furnishings, house equipment and routine household maintenance, 2.6 percent from 2.8 percent; and
   c. Health, 6.3 percent from 7.5 percent; and
   d. Recreation, sport and culture, 5.2 percent from 5.3 percent. 

The indices of information and communication; 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 April 2024 overall inflation were the following:

   a. Food and non-alcoholic beverages with 86.0 percent share or 3.61 percentage points; 
   b. Personal care, and miscellaneous goods and services with 4.9 percent share or 0.21 percentage points; and
   c. Restaurants and accommodation services with 4.9 percent share or 0.20 percentage points. 

2.0 Food Inflation

Food inflation in the province increased further to 6.5 percent in April 2024 from 4.9 percent in the previous month.

2.1 Main Drivers to the Upward Trend of Food Inflation

The acceleration of food inflation in April 2024 was primarily brought about by the slower year-on-year decline in the index of vegetables, tubers, plantains, cooking bananas and pulses at a decline of 2.5 percent in April 2024 from a decrease of 13.5 percent in the previous month. In addition, fish and other seafood index recorded an annual decline of 4.5 percent from an annual decrease of 7.4 percent. Also contributing to the uptrend of food inflation is meat and other parts of slaughtered land animals which recorded a decline of 0.9 percent from a decrease of 2.7 percent. 

Moreover, higher annual increments were also noted in the indices of fruits and other nuts (14.6 percent from 10.1 percent); ready-made food and other food products (10.0 percent from 7.9 percent); sugar, confectionery and desserts (5.3 percent from 3.5 percent); and oils and fats (-8.8 percent from -9.7 percent).

On the contrary, lower year-on-year growths were observed in the index of cereals and cereal products, which include rice, flour, bread and other bakery products, pasta products, and other cereals at 18.5 percent from 21.1 percent in the previous month. (Table D)

2.2 Main Contributors to the Food Inflation

Food inflation shared 81.7 percent or 3.43 percentage points to the overall inflation in April 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 102.6 percent or 6.67 percentage points; 
   b. Fruits and nuts with 6.1 percent or 0.39 percentage points; and
   c. Ready-made food and other food products with 3.7 percent or 0.24 percentage points. (Table D)

In Zamboanga del Sur, the purchasing power of the peso (PPP) in April 2024 is 0.79. This means that a peso in 2018 is worth 79 centavos in April 2024, or the amount of PhP 100.00 in 2018 is equivalent to PhP 79.00 in April 2024. 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 
(Supervising Statistical Specialist) 
Officer-in-Charge