1. Headline Inflation

Zamboanga del Sur’s headline inflation or overall inflation decreased to 4.7 percent in July 2024 from 5.2 percent in June 2024. This brings the province’s average inflation from January 2024 to July 2024 to 3.9 percent. In July 2023, the inflation rate was posted at 3.8 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Downtrend of the Headline Inflation

The downtrend in inflation in July 2024 was primarily influenced by the slower year-on-year increase of food and non-alcoholic beverages at 6.4 percent during the month from 7.0 percent in June 2024. The faster annual decline of housing, water, electricity, gas and other fuels at 2.2 percent during the month from an annual decrease of 0.4 percent in June 2024 also contributed to the downtrend. Moreover, restaurants and accommodation services also contributed to the downtrend as it recorded a slower annual increase of 5.6 percent during the month from 6.3 percent in June 2024. 

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

   a. Alcoholic beverages and tobacco, 8.4 percent; and 
   b. Furnishings, household equipment and routine household maintenance, 2.7 percent. 

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

   a. Health, 6.3 percent from 6.2 percent; 
   b. Transport, 5.1 percent from 4.9 percent;  
   c. Recreation, sport and culture, 3.4 percent from 2.7 percent; and 
   d. Personal care, and miscellaneous goods and services, 5.2 percent from 5.1 percent. 

The indices of clothing and footwear; 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 July 2024 overall inflation were the following:

   a. Food and non-alcoholic beverages with 78.6 percent share or 3.69 percentage points; 
   b. Transport with 6.5 percent share or 0.31 percentage points; and
   c. Restaurants and accommodation services with 5.5 percent share or 0.26 percentage points. 

2.0 Food Inflation

Food inflation in the province decreased to 6.4 percent in July 2024 from 7.0 percent in the previous month.

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in July 2024 was primarily brought about by the slower year-on-year increase in the index of cereals and cereal products at 18.2 percent in July 2024 from an increase of 19.1 percent in the previous month. In addition, fish and other seafood index recorded an annual decline of 6.0 percent from an annual decrease of 4.8 percent. Also contributing to the downtrend of food inflation is the index of meat and other parts of slaughtered land animals at 0.6 percent from 1.2 percent. 

Moreover, lower annual increments were also noted in the indices of sugar, confectionery and desserts (2.6 percent from 3.9 percent); ready-made food and other food products (16.2 percent from 16.7 percent); and oils and fats (-11.0 percent from -10.7 percent). 

On the contrary, higher year-on-year growths were observed in the indices of milk, other dairy products and eggs (0.0 percent from -1.3 percent); fruits and nuts (7.5 percent from 6.7 percent); and vegetables, tubers, plantains, cooking bananas and pulses (5.3 percent from 4.2 percent). (Table D)

2.2 Main Contributors to the Food Inflation

Food inflation shared 73.3 percent or 3.45 percentage points to the overall inflation in July 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 102.6 percent or 6.57 percentage points;
   b. Ready-made food and other food products with 6.2 percent or 0.40 percentage points; and
   c. Vegetables, tubers, plantains, cooking bananas and pulses with 5.1 percent or 0.33 percentage points. (Table D)

In Zamboanga del Sur, the purchasing power of the peso (PPP) in July 2024 is 0.80. This means that a peso in 2018 is worth 80 centavos in July 2024, or the amount of PhP 100.00 in 2018 is equivalent to PhP 80.00 in July 2024. An additional interpretation is that “You will need PhP 125.60 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