Table A. Year-on-Year Inflation Rates, 
for the Bottom 30% Income Household, All Items
In Percent
(2018=100)

A.    Zamboanga City

1.    Inflation Rate for the Bottom 30% Income Households

The Zamboanga City’s inflation rate for the bottom 30% income bracket decelerated to 6.0 percent in August 2024 from 7.3 percent in July 2024. Furthermore, the city’s average inflation from January to August 2024 stood at 5.3 percent. (Table A and Figure 1)

1.1    Main Drivers to the Downtrend of the Inflation Rate for the Bottom 30%
Income Households

The decrease in the inflation rate in August 2024 for the bottom 30% income households in Zamboanga City was mainly driven by the slower annual increase in the Food and Non-alcoholic Beverages index, which eased to 5.5 percent from 8.1 percent in the previous month. Furthermore, the decline in prices within the categories of Transport, which posted 2.7 percent from 4.9 percent, and in Education Services at 14.3 percent from 18.5 percent, also contributed to the downtrend in the inflation rate for the bottom 30% income households in the city.

In addition, lower increments were also recorded in the following commodity groups:
a.    Personal Care, Miscellaneous Goods and Services index with 2.7 percent from
2.9 percent;
b.    Clothing and Footwear index also eased to 1.3 percent from 1.6 percent inflation; and,
c.    Alcoholic Beverages and Tobacco at 4.5 percent from 4.6 percent in the previous month.

In comparison, there were notable increases in the annual growth rates within the following indices:
a.    Housing, Water, Electricity, Gas, and Other Fuels, which posted 12.0 percent from 9.3 percent;
b.    Health, 3.6 percent from 2.4 percent; 
c.    Furnishings, Household Equipment and Routine Household Maintenance with 5.5 percent from 5.3 percent; and,
d.    Recreation, Sport and Culture, 5.2 percent from 3.1 percent inflation in July 2024.

Meanwhile, the annual rates for the rest of the commodity groups in Zamboanga City remained consistent with those recorded in the previous month. (Table C)

1.2    Main Contributors to the Inflation Rate for the Bottom 30% Income Households

The top three (3) commodity groups contributing to the August 2024 inflation rate for the bottom 30% were the following:
a)    Food and Non-alcoholic Beverages, contributing 53.8 percent share or 3.2 percentage points;
b)    Housing, Water, Electricity, Gas and Other Fuels with 33.8 percent share or
2.0 percentage points; and,
c)    Transport posted, contributing 2.7 percent share or 0.2 percentage point.

Table B. Year-on-year Inflation Rates for the Bottom 30% Income Households 
in Zamboanga City, All items in Percent
January 2020- July 2024
(2018=100)

Table C. Inflation Rate by Commodity Group for the Bottom 30% Income Households in
ZAMBOANGA CITY 2018=100

2.    Food Inflation

The monthly Food inflation for the bottom 30% Income Households in Zamboanga City decelerated to 6.0 percent in August 2024 from 8.9 percent in July 2024. This was comparatively lower than the recorded Food inflation in August 2023, which stood at 7.4 percent.

2.1 Main Drivers to the Downtrend of Food Inflation

The deceleration of Food inflation in August 2024 was primarily driven by a lower year-on-year increase in Cereals and Cereal Products index which stood at 11.2 percent from 17.0 percent in the previous month. Furthermore, the decrease of prices within the categories of Ready-made food and other food products n.e.c. (ND), and Vegetables, tubers, plantains, cooking bananas and pulses (ND) also contributed to the downtrend which posted (11.2) percent from (10.6) percent from 9.0 percent, and 6.5 percent from 9.0 percent, respectively.

In addition, the following food groups also recorded to have decreased during the month:
a.    Fish and other seafood (ND) at (0.7) from 0.0 percent;
b.    Milk, other dairy products and eggs (ND), which posted 0.4 percent from 2.4 percent;
c.    Meat and other parts of slaughtered land animals (ND), 3.3 percent from 3.6 percent; and,
d.    Sugar, confectionery and desserts (ND), (6.1) percent from (5.8) percent inflation.

Contrarily, higher increments were observed in the food commodity groups of Fruits and Nuts (ND), which posted 21.7 percent from 19.8 percent, and Flour, Bread and Other Bakery Products, Pasta Products, and Other Cereals at 3.9 percent from 3.6 percent inflation in the previous month.

Meanwhile, the annual rates for the food index of Oils and Fats retained at (0.1) percent inflation in August 2024.

2.2 Main Contributors to the Food Inflation

Food inflation contributed 53.6 percent share or 4.5 percentage points to the overall inflation for the Bottom 30% Income Households in Zamboanga City. Moreover, the top three (3) Food groups contributing to the August 2024 food inflation were the following:

a)    Cereals and Cereal Products, contributing 75.6 percent share or 3.7 percentage points;
b)    Fruits and Nuts (ND) with 8.8 percent share or 0.5 percentage point; and,
c)    Vegetables, tubers, plantains, cooking bananas and pulses (ND), contributing 8.1 percent share or 0.5 percentage point.
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Note: CPIs and inflation rates for the bottom 30% income households by region and by province and selected city are posted at the PSA website (http://openstat.psa.gov.ph/).

MEWCHUN WS. PAMARAN
Regional Director

MFET/MGCN/kxbl