1. Headline Inflation

Zamboanga del Sur’s headline inflation or overall inflation posted a slower annual decline of 0.6 percent in May 2025 from an annual decrease of 1.3 percent in April 2025. This brings the province’s average inflation from January to May 2025 to -0.1 percent. In May 2024, the inflation rate was recorded at 4.3 percent.

1.1 Main Drivers to the Uptrend of the Headline Inflation

The uptrend in the overall inflation in May 2025 was primarily brought about by the slower year-on-year decline in the index of food and non-alcoholic beverages at 2.6 percent in May 2025 from a 3.4 percent annual drop in the previous month. Also contributing to the uptrend was the faster annual increase in the index of housing, water, electricity, gas and other fuels at 3.6 percent during the month from 1.2 percent in April 2025. In addition, slower annual decrease was registered in the index of information and communication at 0.1 percent in May 2025 from a 0.6 percent annual decrease in the previous month.

Moreover, the index of recreation, sport, and culture recorded a higher annual rate of 3.3 percent during the month from 3.2 percent in April 2025.

In contrast, lower annual increments were noted in the indices of the following commodity groups during the month:

a. Alcoholic beverages and tobacco, 5.3 percent from 5.6 percent;
b. Furnishings, household equipment and routine household maintenance, 3.8 percent from 4.3 percent;
c. Health, 3.6 percent from 4.2 percent;
d. Transport, -3.5 percent from -3.0 percent;
e. Restaurants and accommodation services, 1.4 percent from 2.2 percent; and
f. Personal care, and miscellaneous goods and services, 3.0 percent from 3.1 percent.

The indices of clothing and footwear, 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 May 2025 overall inflation were the following:

a. Food and non-alcoholic beverages with 249.5 percent share or -1.50 percentage points;
b. Transport with 36.2 percent share or -0.22 percentage point; and
c. Information and communication with 0.3 percent share or -0.00 percentage point.

2.0 Food Inflation

Food inflation in the province slowly declined to 2.6 percent in May 2025 from an annual drop of 3.4 percent in the previous month.

2.1 Main Drivers to the Upward Trend of Food Inflation

The acceleration of food inflation in May 2025 was primarily brought about by the faster year-on-year increase in the index of fish and other seafood at 9.1 percent in May 2025 from 2.8 percent in the previous month. This was followed by the faster inflation rate of fruits and nuts at 16.2 percent during the month from 10.8 percent in April 2025, and milk, other dairy products and eggs at 8.3 percent in May 2025 from 5.8 percent in the previous month.

In addition, higher inflation rates during the month were noted in the following food groups:

a. Meat and other parts of slaughtered land animals, 6.8 percent from 6.6 percent; and 
b. Olis and fats, -4.3 percent from -5.2 percent.

In contrast, lower annual increases were noted in the following food groups:

a. Cereals and cereal products, -14.7 percent from -14.5 percent;
b. Vegetables, tubers, plantains, cooking bananas and pulses, -8.2 percent from -0.6 percent;
c. Sugar, confectionery and desserts, -2.4 percent from -0.2 percent; and 
d. Ready-made food and other food products, -0.7 percent from -0.2 percent.

2.2 Main Contributors to the Food Inflation

Food inflation shared 272.8 percent or -1.64 percentage points to the overall inflation in May 2025. The top three food groups in terms of contribution to food inflation during the month were the following:

a. Cereals and cereal products with 203.5 percent share or -6.10 percentage points;
b. Vegetables, tubers, plantains, cooking bananas and pulses with 23.8 percent share or -0.71 percentage point; and
c. Sugar, confectionery and desserts with 2.3 percent share or -0.07 percentage point.

In Zamboanga del Sur, the purchasing power of the peso (PPP) in May 2025 is 0.80. This means that a peso in 2018 is worth 80 centavos in May 2025, or the amount of PhP 100.00 in 2018 is equivalent to PhP 80.00 in May 2025. An additional interpretation is that “You will need PhP 125.10 to purchase the same set of goods and services worth PhP 100.00 in 2018.” (Table E)

DIMNA P. BIENES 
Chief Statistical Specialist