1. Headline Inflation

Zamboanga del Sur’s headline inflation or overall inflation declined to 0.6 percent in March 2025 from an annual increase of 0.2 percent in February 2025. In March 2024, the inflation rate was posted at 3.0 percent. (Tables A and B, and Figure 1)

1.1 Main Drivers to the Downtrend of the Headline Inflation

The downtrend in the overall inflation in March 2025 was primarily brought about by the faster year-on-year decline in the index of food and non-alcoholic beverages at 2.5 percent in March 2025 from a 1.6 percent annual decrease in the previous month. Also contributed to the downtrend was the slower annual increase in the index of housing, water, electricity, gas and other fuels at 1.6 percent during the month from 3.7 percent in February 2025. In addition, a slower inflation rate was recorded for alcoholic beverages and tobacco at 5.5 percent in March 2025 from 6.5 percent in the previous month.

Moreover, lower annual rates were noted in the indices of the following commodity groups:

a. Furnishings, household equipment and routine household maintenance, 4.2 percent from 4.5 percent; and 
b. Transport, -2.2 percent from -2.0 percent.

In contrast, higher annual increments were noted in the indices of the following commodity groups during the month:

a. Health, 3.9 percent from 3.3 percent;  
b. Recreation, sport and culture, 3.3 percent from 3.1 percent; and
c. Personal care, and miscellaneous goods and services, 3.4 percent from 3.1 percent.

The indices of clothing and footwear, information and communication, 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 March 2025 overall inflation were the following:

a. Food and non-alcoholic beverages with 232.6 percent share or -1.40 percentage points;
b. Transport with 22.0 percent share or -0.13 percentage point; and
c. Information and communication with 1.8 percent share or -0.01 percentage point.

2.0 Food Inflation

Food inflation in the province further declined to 2.9 percent in March 2025 from an annual drop of 1.9 percent in the previous month.

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in March 2025 was primarily brought about by the faster year-on-year decline in the index of cereals and cereal products at 13.4 percent in March 2025 from 10.1 percent annual decline in the previous month. This was followed by the slower inflation rate of ready-made food and other food products at 1.4 percent during the month from 4.2 percent in February 2025, and fruits and nuts at 13.2 percent in March 2025 from 14.4 percent in the previous month.

In addition, lower inflation rates during the month were noted in the following food groups:

a. Milk, other dairy products and eggs, 3.3 percent from 3.6 percent; and
b. Oils and fats, -4.8 percent from -4.0 percent; and
c. Sugar, confectionery and desserts, 2.1 percent from 2.4 percent.

In contrast, higher annual increases were noted in the following food groups:

a. Meat and other parts of slaughtered land animals, 5.8 percent from 5.0 percent;
b. Fish and other seafood, 4.6 percent from 3.4 percent; and
c. Vegetables, tubers, plantains, cooking bananas and pulses, 1.8 percent from 0.4 percent.

2.2 Main Contributors to the Food Inflation

Food inflation shared 258.8 percent or -1.55 percentage points to the overall inflation in March 2025. The top three food groups in terms of contribution to food inflation during the month were the following:

a. Cereals and cereal products with 189.2 percent share or -5.49 percentage points;
b. Oils and fats with 2.1 percent share or -0.06 percentage point; and
c. Ready-made food and other food products with -1.4 percent share or 0.04 percentage point. 

In Zamboanga del Sur, the purchasing power of the peso (PPP) in March 2025 is 0.80. This means that a peso in 2018 is worth 80 centavos in March 2025, or the amount of PhP 100.00 in 2018 is equivalent to PhP 80.00 in March 2025. An additional interpretation is that “You will need PhP 125.10 to purchase the same set of goods and services worth PhP 100.00 in 2018.” (Table E)

DIMNA P. BIENES 
Chief Statistical Specialist