1. Headline Inflation

Zamboanga del Sur’s headline inflation or overall inflation increased to 5.2 percent in June 2024 from 4.3 percent in May 2024. This brings the province’s average inflation from January 2024 to June 2024 to 3.8 percent. In June 2023, the inflation rate was higher at 5.8 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Uptrend of the Headline Inflation

The uptrend in inflation in June 2024 was primarily influenced by the faster year-on-year increase of food and non-alcoholic beverages at 7.0 percent during the month from 6.4 percent in May 2024. The slower annual decline of housing, water, electricity, gas and other fuels at 0.4 percent during the month from an annual decrease of 2.8 percent in May 2024 also contributed to the uptrend. Moreover, transport also contributed to the uptrend as it recorded a faster annual increase of 4.9 percent during the month from 3.2 percent in May 2024. 

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

   a. Restaurants and accommodation services, 6.3 percent; 
   b. Personal care, and miscellaneous goods and services, 5.1 percent; and 
   c. Clothing and footwear, 3.3 percent. 

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

   a. Alcoholic beverages and tobacco, 8.6 percent from 8.8 percent; 
   b. Health, 6.2 percent from 6.4 percent; and 
   c. Recreation, sport and culture, 2.7 percent from 2.8 percent. 

The indices of furnishings, household equipment and routine household maintenance; 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 June 2024 overall inflation were the following:

   a. Food and non-alcoholic beverages with 76.1 percent share or 3.96 percentage points; 
   b. Transport with 5.6 percent share or 0.29 percentage points; and
   c. Restaurants and accommodation services with 5.5 percent share or 0.29 percentage points. 

2.0 Food Inflation

Food inflation in the province increased to 7.0 percent in June 2024 from 6.3 percent in the previous month.

2.1 Main Drivers to the Upward Trend of Food Inflation

The acceleration of food inflation in June 2024 was primarily brought about by the slower year-on-year decline in the index of fish and other seafood at a decline of 4.8 percent in June 2024 from a decrease of 6.1 percent in the previous month. In addition, cereals and cereal products index recorded an annual growth of 19.1 percent from an annual increase of 18.5 percent. Also contributing to the uptrend of food inflation is the index of vegetables, tubers, plantains, cooking bananas and pulses at 4.2 percent from 0.8 percent. 

Moreover, higher annual increments were also noted in the indices of ready-made food and other food products; and meat and other parts of slaughtered land animals at 16.7 percent and 1.2 percent, respectively.

On the contrary, lower year-on-year growths were observed in the indices of milk, other dairy products and eggs (-1.3 percent from -0.2 percent); oils and fats (-10.7 percent from -9.9 percent); fruits and nuts (6.7 percent from 15.9 percent); and sugar, confectionery and desserts (3.9 percent from 6.1 percent). (Table D)

2.2 Main Contributors to the Food Inflation

Food inflation shared 71.6 percent or 3.72 percentage points to the overall inflation in June 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 100.3 percent or 7.02 percentage points;
   b. Ready-made food and other food products with 6.0 percent or 0.42 percentage points; and
   c. Vegetables, tubers, plantains, cooking bananas and pulses with 3.8 percent or 0.27 percentage points. (Table D)

In Zamboanga del Sur, the purchasing power of the peso (PPP) in June 2024 is 0.79. This means that a peso in 2018 is worth 79 centavos in June 2024, or the amount of PhP 100.00 in 2018 is equivalent to PhP 79.00 in June 2024. An additional interpretation is that “You will need PhP 126.40 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