1. Overall Inflation

Zamboanga del Sur’s inflation for the bottom 30% income households increased to 8.0 percent in June 2024 from 7.3 percent in May 2024. In June 2023, inflation rate was posted at 5.6 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Uptrend of the Overall Inflation

The main driver of the upward trend of the overall inflation for this income group in June 2024 was the slower year-on-year decrease of housing, water, electricity, gas and other fuels at 0.2 percent from a decline of 3.3 percent in the previous month. This was followed by food and non-alcoholic beverages which posted an annual increase of 10.5 percent from 10.2 percent; and transport at 2.8 percent from 1.6 percent in May 2024. 

Higher annual increment was also noted in the indices of restaurants and accommodation services at 6.1 percent in June 2024 from 5.2 percent in the previous month; personal care, and miscellaneous goods and services at 6.0 percent from 5.3 percent; and furnishings, household equipment and routine household maintenance at 4.7 percent from 4.5 percent. 

In contrast, two commodity groups registered lower inflation rates during the month:

   a. Alcoholic beverages and tobacco, 9.9 percent from 10.6 percent; and 
   b. Health, 4.0 percent from 4.4 percent. 

The indices of clothing and footwear; information and communication; recreation, sport and culture; education services; and financial services retained their previous month’s annual increment. (Table C)

1.2 Main Contributors to the Overall Inflation

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

   a. Food and non-alcoholic beverages with 85.9 percent share or 6.87 percentage points; 
   b. Restaurants and accommodation services with 3.2 percent share or 0.25 percentage points; and
   c. Personal care, and miscellaneous goods and services with 3.2 percent share or 0.25 percentage points. 

2.0 Food Inflation

Food inflation for the bottom 30% income households in the province increased to 10.6 percent in June 2024 from 10.3 percent in the previous month.

2.1 Main Drivers to the Upward Trend of Food Inflation

The acceleration of the food inflation in the province was mainly brought about by the faster annual increase in the vegetables, tubers, plantains, cooking bananas and pulses at 4.1 percent during the month from 1.1 percent in May 2024. Also contributing to the uptick is the slower annual decrease in fish and other seafood at 3.8 percent during the month from an annual decrease of 4.8 percent. The faster annual increase in ready-made food and other food products at 19.0 percent from 12.1 percent; and meat and other parts of slaughtered land animals at 1.4 percent from 0.1 percent also contributed to the uptrend.

On the contrary, lower annual growth rates were observed in the indices of cereals and cereal products, which include rice, corn, flour, bread and other bakery products, pasta products, and other cereals (24.7 percent from 24.8 percent); milk other dairy products and eggs (-1.8 percent from -0.5 percent); oils and fats (-13.0 percent from -11.6 percent); fruits and nuts (8.1 percent from 17.2 percent); and sugar, confectionery and desserts (-5.5 percent from -0.7 percent). (Table D)

2.2 Main Contributors to the Food Inflation

Food inflation contributed 82.8 percent or 6.63 percentage points to the June 2024 overall inflation for this particular income group.

Among the food groups, the main contributors to the food inflation during the month were the following:

   a. Cereals and cereal products, which include rice, corn, flour, bread and other bakery products, and other cereals, with 100.0 percent share or 10.60 percentage points; 
   b. Ready-made food and other food products with 4.3 percent share or 0.46 percentage points; and
   c. Vegetables, tubers, plantains, cooking bananas and pulses with 2.6 percent share or 0.27 percentage points. (Table D)

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