1. Headline Inflation

Zamboanga del Sur’s headline inflation or overall inflation increased to 1.6 percent in January 2025 from 0.4 percent in December 2024. In January 2024, the inflation rate was posted at 2.9 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Uptrend of the Headline Inflation

The uptrend in inflation in January 2025 was primarily influenced by the higher year-on-year increase in the heavily-weighted food and non-alcoholic beverages at 1.2 percent during the month from a decline of 0.8 percent in December 2024. In addition, the higher annual increases in the furnishings, household equipment and routine household maintenance index at 4.5 percent during the month from 1.7 percent in December 2024, and transport index at 2.6 percent in January 2025 from 1.2 percent in the previous month also contributed to the uptrend in the overall inflation.

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

a. Alcoholic beverages and tobacco, 5.9 percent from 5.1 percent;  
b. Health, 1.7 percent from 0.4 percent; 
c. Restaurants and accommodation services, 3.9 percent from 3.7 percent; and 
d. Personal care, and miscellaneous goods and services, 2.8 percent. from 2.2 percent.

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

a. Housing, water, electricity, gas and other fuels, 0.9 percent from 2.7 percent;  
b. Information and communication, -6.0 percent from -5.6 percent; and 
c. Recreation, sport and culture, 2.4 percent. from 2.5 percent.

The financial services recorded zero percent inflation rate in January 2025 from an annual decline of 2.1 percent in December 2024. The indices of clothing and footwear, and education 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 January 2025 overall inflation were the following:

a. Food and non-alcoholic beverages with 43.5 percent share or 0.70 percentage point; 
b. Restaurants and accommodation services with 11.3 percent share or 0.18 percentage point; and
c. Transport with 9.8 percent share or 0.16 percentage point. 

2.0 Food Inflation

Food inflation in the province increased to 1.0 percent in January 2025 from a decline of 1.1 percent in the previous month.

2.1 Main Drivers to the Upward Trend of Food Inflation

The acceleration of food inflation in January 2025 was primarily brought about by the faster year-on-year increase in the index of fish and other seafood at 6.1 percent in January 2025 from a decline of 0.3 percent in the previous month. This was followed by vegetables, tubers, plantains, cooking bananas with a faster annual increase of 5.8 percent during the month from a decline of 4.9 percent in December 2024.

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

a. Meat and other parts of slaughtered land animals, 4.9 percent from 0.2 percent; 
b. Milk, other dairy products and eggs, 1.1 percent from 0.5 percent; 
c. Oils and fats, -3.3 percent from -4.4 percent; 
d. Fruits and nuts, 12.1 percent from 11.0 percent; 
e. Sugar, confectionery and desserts, 1.6 percent from 1.2 percent; and
f. Ready-made food and other food products, 3.2 percent from 1.4 percent. 

On the contrary, the index of cereals and cereal products recorded a faster annual decline of 5.1 percent during the month from a decrease of 2.6 percent in the previous month.

2.2 Main Contributors to the Food Inflation

Food inflation shared 32.3 percent or 0.52 percentage point to the overall inflation in January 2025. The top three food groups in terms of contribution to food inflation during the month were the following:

a. Fish and other seafood with 215.8 percent or 2.16 percentage points;
b. Meat and other parts of slaughtered land animals with 83.0 percent or 0.83 percentage point; and
c. Vegetables, tubers, plantains, cooking bananas and pulses with 70.6 percent or 0.71 percentage point. 

In Zamboanga del Sur, the purchasing power of the peso (PPP) in January 2025 is 0.79. This means that a peso in 2018 is worth 79 centavos in January 2025, or the amount of PhP 100.00 in 2018 is equivalent to PhP 79.00 in January 2025. An additional interpretation is that “You will need PhP 127.20 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