1. Headline Inflation
Zamboanga del Sur’s headline inflation or overall inflation further decreased to 1.0 percent in October 2024 from 1.4 percent in September 2024. This brings the province’s average inflation from January 2024 to October 2024 to 3.3 percent. In October 2023, the inflation rate was posted at 5.2 percent. (Tables A and B, and Figure 1)
1.1 Main Drivers to the Downtrend of the Headline Inflation
The downtrend in inflation in October 2024 was primarily influenced by the slower year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 1.1 percent during the month from 1.6 percent in September 2024. The slower annual increase of housing, water, electricity, gas and other fuels at 0.3 percent during the month from an annual increase of 1.2 percent in September 2024 also contributed to the downtrend. Moreover, information and communication also contributed to the downtrend as it recorded a faster annual decrease of 5.6 percent during the month from a decline of 4.1 percent in September 2024.
In addition, lower annual increments were also noted in the indices of the following commodity groups:
a. Clothing and footwear, 1.8 percent from 2.1 percent;
b. Health, 0.7 percent from 0.9 percent; and
c. Personal care, and miscellaneous goods and services, 3.0 percent. from 3.5 percent.
In contrast, the following commodity groups registered higher inflation rates during the month:
a. Alcoholic beverages and tobacco, 3.9 percent from 3.8 percent;
b. Transport, -3.1 percent from -4.7 percent; and
c. Recreation, sport and culture, 2.5 percent. from 1.9 percent.
The indices of furnishings, household equipment and routine household maintenance, education services, restaurants and accommodation 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 October 2024 overall inflation were the following:
a. Food and non-alcoholic beverages with 61.6 percent share or 0.62 percentage point;
b. Restaurants and accommodation services with 22.4 percent share or 0.22 percentage point; and
c. Personal care, and miscellaneous goods and services with 13.9 percent share or 0.14 percentage point.
2.0 Food Inflation
Food inflation in the province further decreased to 0.9 percent in October 2024 from 1.3 percent in the previous month.
2.1 Main Drivers to the Downward Trend of Food Inflation
The deceleration of food inflation in October 2024 was primarily brought about by the faster year-on-year decline in the index of fish and other seafood at 6.5 percent in October 2024 from a decrease of 1.5 percent in the previous month. This was followed by vegetables, tubers, plantains, cooking bananas and pulses with a faster annual decline of 5.6 percent during the month from a decrease of 3.1 percent in September 2024.
In addition, the index of meat and other parts of slaughtered land animals also contributed to the downtrend as it recorded a slower annual increase of 0.4 percent during the month from 1.9 percent in September 2024.
Moreover, lower annual increments were noted in the indices of the following food groups during the month:
a. Oils and fats, -4.8 percent from -4.6 percent;
b. Fruits and nuts, 15.3 percent from 19.0 percent; and
c. Ready-made food and other food products, 4.0 percent share from 5.8 percent.
On the contrary, higher year-on-year growths were observed in the indices of cereals and cereal products (5.3 percent from 2.3 percent); milk, other dairy products and eggs (2.0 percent from 1.0 percent); and sugar, confectionery and desserts (1.0 percent from -0.6 percent). (Table D)
2.2 Main Contributors to the Food Inflation
Food inflation shared 46.1 percent or 0.46 percentage point to the overall inflation in October 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 186.3 percent or 1.68 percentage points;
b. Fruits and nuts with 41.0 percent or 0.37 percentage point; and
c. Milk, other dairy products and eggs with 10.9 percent or 0.10 percentage point.
In Zamboanga del Sur, the purchasing power of the peso (PPP) in October 2024 is 0.80. This means that a peso in 2018 is worth 80 centavos in October 2024, or the amount of PhP 100.00 in 2018 is equivalent to PhP 80.00 in October 2024. An additional interpretation is that “You will need PhP 125.70 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
