1. Overall Inflation

Zamboanga del Sur’s inflation for the bottom 30% income households decreased to 0.9 percent in December 2024 from 1.7 percent in November 2024. In December 2023, inflation rate was posted at 5.3 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Downtrend of the December 2024 Overall Inflation

The main driver of the downward trend of the overall inflation for this income group in December 2024 was the faster year-on-year decline in the heavily-weighted food and non-alcoholic beverages at 0.2 percent from an increase of 1.6 percent in the previous month. This was followed by recreation, sport and culture which posted a lower annual increase of 3.1 percent in December 2024 from 3.7 percent in the previous month.

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

   a. Alcoholic beverages and tobacco, 6.9 percent from 6.2 percent;  
   b. Housing, water, electricity, gas and other fuels, 3.2 percent from 2.0 percent;  
   c. Furnishings, household equipment and routine household maintenance, 2.8 percent from 2.7 percent;  
   d. Health, 1.2 percent from 1.1 percent; 
   e. Transport, 1.0 percent from -3.8 percent; and 
   f. Personal care, and miscellaneous goods and services, 3.4 percent from 3.1 percent.

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

1.2 Main Contributors to the December 2024 Overall Inflation

The top three commodity groups contributing to the December 2024 overall inflation for the bottom 30% income households were the following:

   a. Housing, water, electricity, gas and other fuels with 39.2 percent share or 0.35 percentage point; 
   b. Restaurants and accommodation services with 17.4 percent share or 0.16 percentage point; and
   c. Alcoholic beverages and tobacco with 16.8 percent share or 0.15 percentage point. 

2.0 Annual Average Inflation Rate

The province’s annual average inflation rate in 2024 for this income group stood at 4.2 percent, which was lower than the 2023 annual average inflation rate of 7.3 percent. (Table D)

2.1 Main Drivers to the Downward Trend of the 2024 Annual Average Inflation

The downtrend in the 2024 annual average inflation for the bottom 30% income households was primarily caused by the lower annual average increase in the index of food and non-alcoholic beverages at 5.4 percent in 2024 from 8.5 percent annual average inflation in 2023. This was followed by housing, water, electricity, gas and other fuels with a faster annual average decline of 1.9 percent in 2024 from 3.4 percent in 2023. Moreover, the annual average inflation for transport declined by 0.6 percent in 2024 from 7.1 percent in 2023.

In addition, the following commodity groups recorded lower annual average inflation rates in 2024.

   a. Clothing and footwear, 3.1 percent from 3.8 percent;  
   b. Furnishings, household equipment and routine household maintenance, 4.0 percent from 8.0 percent;  
   c. Health, 3.3 percent from 4.3 percent;  
   d. Recreation, sport and culture, 6.0 percent from 10.7 percent; 
   e. Restaurants and accommodation services, 4.7 percent from 6.2 percent; 
   f. Financial services, -2.1 percent from 0.0 percent; and 
   g. Personal care, and miscellaneous goods and services, 4.7 percent from 6.3 percent.

In contrast, the following commodity groups recorded higher annual average inflation rates in 2024:

   a. Alcoholic beverages and tobacco, 8.1 percent from 6.4 percent; 
   b. Information and communication, 0.8 percent from 0.3 percent; and 
   c. Education services, 5.3 percent from 1.0 percent.

2.2 Main Contributors to the 2024 Annual Average Inflation

The top three commodity groups contributing to the 2024 annual inflation for the bottom 30% income households were the following:

   a. Food and non-alcoholic beverages with 85.0 percent share or 3.57 percentage points; 
   b. Personal care, and miscellaneous goods and services with 4.8 percent share or 0.20 percentage point; and
   c. Restaurants and accommodation services with 4.7 percent share or 0.20 percentage point. 

3.0 Food Inflation

Food inflation for the bottom 30% income households in the province declined by 0.5 percent in December 2024 from an increase of 1.4 percent in the previous month.

3.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in the province was mainly brought about by the faster annual decline in the cereals and cereal products index at 2.2 percent during the month from an increase of 2.1 percent in November 2024. Also contributing to the downtrend is the faster annual decrease in the index of vegetables, tubers, plantains, cooking bananas and pulses at 5.0 percent during the month from an annual increase of 4.3 percent in the previous month. The slower annual increase in the index of fruits and nuts at 12.7 percent during the month from 18.0 percent in the previous month also contributed to the downtrend.

Moreover, lower annual increments were noted in the indices of the following food groups during the month:

   a. Meat and other parts of slaughtered land animals, 0.4 percent from 0.9 percent; 
   b. Oils and fats, -3.5 percent from -3.2 percent; and
   c. Ready-made food and other food products, 1.3 percent from 2.2 percent. 

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

   a. Fish and other seafood, 2.9 percent from -2.3 percent; 
   b. Milk, other dairy products and eggs, 0.3 percent from -0.5 percent; and
   c. Sugar, confectionery and desserts, -5.0 percent from -7.5 percent. 

3.2 Main Contributors to the Food Inflation

Food inflation contributed -38.4 percent or -0.35 percentage point to the December 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 214.4 percent share or -1.07 percentage points; 
   b. Vegetables, tubers, plantains, cooking bananas and pulses with 76.1 percent share or -0.38 percentage point; and
   c. Sugar, confectionery and desserts with 19.8 percent share or -0.10 percentage point. 

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