1. Overall Inflation

Zamboanga del Sur’s inflation for the bottom 30% income households decreased to 4.7 percent in August 2024 from 7.4 percent in July 2024. In August 2023, inflation rate was posted at 5.6 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Downtrend of the Overall Inflation

The main driver of the downward trend of the overall inflation for this income group in August 2024 was the slower year-on-year increase of food and non-alcoholic beverages at 5.6 percent from an annual rise of 9.8 percent in the previous month. This was followed by transport which posted an annual decline of 3.2 percent from an annual rise of 3.5 percent; and personal care, and miscellaneous goods and services at 4.4 percent from 6.2 percent in July 2024. 

Moreover, lower annual rates were noted in the indices of the following commodity groups during the month:

   a. Alcoholic beverages and tobacco, 6.0 percent from 9.1 percent; 
   b. Furnishings, household equipment and routine household maintenance, 2.2 percent from 4.8 percent; 
   c. Clothing and footwear, 2.4 percent from 3.5 percent; and 
   d. Recreation, sport and culture, 3.7 percent from 6.4 percent. 

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

   a. Housing, water, electricity, gas and other fuels, 3.2 percent from -2.1 percent; 
   b. Health, 4.4 percent from 3.9 percent; and
   c. Education services, 9.0 percent from 8.0 percent. 

The indices of information and communication; restaurants and accommodation 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 August 2024 overall inflation were the following:

   a. Food and non-alcoholic beverages with 79.0 percent share or 3.71 percentage points; 
   b. Housing, water, electricity, gas and other fuels with 7.3 percent share or 0.34 percentage points; and
   c. Restaurants and accommodation services with 4.8 percent share or 0.22 percentage points. 

2.0 Food Inflation

Food inflation for the bottom 30% income households in the province decreased to 5.7 percent in August 2024 from 9.9 percent in the previous month.

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of the food inflation in the province was mainly brought about by the slower annual increase in the cereals and cereal products index at 16.7 percent during the month from 23.4 percent in July 2024. Also contributing to the downtrend is the faster annual decline in the index of fish and other seafood at 13.4 percent during the month from an annual decrease of 5.0 percent. The slower annual increase in the index of ready-made and other food products at 10.8 percent from 19.1 percent also contributed to the downtrend.

Moreover, lower annual increments were also noted in the indices sugar, confectionery and desserts; and milk, other dairy products and eggs at a decline of 9.6 percent and 0.5 percent, respectively.

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

   a. Meat and other parts of slaughtered land animals, 1.7 percent from 0.4 percent; 
   b. Oils and fats, -3.4 percent from -13.4 percent; 
   c. Fruits and nuts, 18.7 percent from 8.8 percent; and 
   d. Vegetables, tubers, plantains, cooking bananas and pulses, 8.1 percent from 4.4 percent. (Table D)

2.2 Main Contributors to the Food Inflation

Food inflation contributed 75.5 percent or 3.55 percentage points to the August 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 123.4 percent share or 7.04 percentage points; 
   b. Vegetables, tubers, plantains, cooking bananas and pulses with 9.4 percent share or 0.53 percentage points; and
   c. Fruits and nuts with 8.5 percent share or 0.49 percentage points. (Table D)

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