1. Overall Inflation
Zamboanga del Sur’s inflation for the bottom 30% income households decreased to 7.4 percent in July 2024 from 8.0 percent in June 2024. In July 2023, inflation rate was posted at 3.1 percent.
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 July 2024 was the slower year-on-year increase of food and non-alcoholic beverages at 9.8 percent from an annual rise of 10.5 percent in the previous month. This was followed by housing, water, electricity, gas and other fuels which posted an annual decrease of 2.1 percent from a decline of 0.2 percent; and restaurants and accommodation services at 5.3 percent from 6.1 percent in June 2024.
Lower annual increment was also noted in the indices of alcoholic beverages and tobacco at 9.1 percent in July 2024 from 9.9 percent in the previous month; clothing and footwear at 3.5 percent from 3.6 percent; and health at 3.9 percent from 4.0 percent.
In contrast, four commodity groups registered higher inflation rates during the month:
a. Furnishings, household equipment and routine household maintenance, 4.8 percent from 4.7 percent;
b. Transport, 3.5 percent from 2.8 percent;
c. Recreation, sport and culture, 6.4 percent from 6.0 percent; and
d. Personal care, and miscellaneous goods and services, 6.2 percent from 6.0 percent.
The indices of information and communication; education 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 July 2024 overall inflation were the following:
a. Food and non-alcoholic beverages with 87.6 percent share or 6.48 percentage points;
b. Personal care, and miscellaneous goods and services with 3.6 percent share or 0.27 percentage points; and
c. Restaurants and accommodation services with 3.0 percent share or 0.22 percentage points.
2.0 Food Inflation
Food inflation for the bottom 30% income households in the province decreased to 9.9 percent in July 2024 from 10.6 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 index of cereals and cereal products at 23.4 percent during the month from 24.7 percent in June 2024. Also contributing to the downtrend is the faster annual decrease in the index of fish and other seafood at 5.0 percent during the month from an annual decrease of 3.8 percent. The slower annual increase in the index meat and other parts of slaughtered land animals at 0.4 percent from 1.4 percent also contributed to the downtrend.
Moreover, lower annual increments were also noted in the indices sugar, confectionery and desserts; and oils and fats at a decline of 6.6 percent and 13.4 percent, respectively.
On the contrary, higher annual growth rates were observed in the indices of milk, other dairy products and eggs (-0.4 percent from -1.8 percent); fruits and nuts (8.8 percent from 8.1 percent); vegetables, tubers, plantains, cooking bananas and pulses (4.4 percent from 4.1 percent); and ready-made food and other food products (19.1 percent from 19.0 percent). (Table D)
2.2 Main Contributors to the Food Inflation
Food inflation contributed 84.2 percent or 6.23 percentage points to the July 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 102.1 percent share or 10.11 percentage points;
b. Ready-made food and other food products with 4.7 percent share or 0.46 percentage points; and
c. Vegetables, tubers, plantains, cooking bananas and pulses with 3.0 percent share or 0.30 percentage points. (Table D)
DIMNA P. BIENES
(Supervising Statistical Specialist)
Officer-in-Charge
