Table 1. Year-on-Year Headline Inflation Rates, All Items 
in Percent
(2018=100)

Inflation in Sultan Kudarat Province

1. Headline Inflation

The inflation rate or the year-on-year change on the prices of goods and services commonly purchased by people in the province of Sultan Kudarat continued to slow down to 3.8 percent in January 2024 from 6.3 percent in December 2023. In January 2023, the inflation rate was higher at 7.3 percent. (Table 1, Table 2 and Figure 1)

Figure 1: Inflation Rate in Sultan Kudarat Province, All Items
January 2023 to January 2024
(2018=100)

Table 2. Year-on-Year Inflation Rates, Sultan Kudarat Province in Percent
January 2019 – January 2024
(2018=100)

1.1.    Main Drivers to the Downward Trend of the Headline Inflation

The downtrend in the overall inflation in January 2024 was primarily brought about by the lower annual growth rate in the index of Food and Non-Alcoholic Beverages at 5.4 percent compared to 9.7 percent in December 2023. This was followed by Transport at –2.5 percent deflation compared to 0.2 percent in December 2023, and Housing, Water, Electricity, Gas and Other Fuels at -1.5 percent deflation compared to -0.7 percent deflation in December 2023.

In addition, lower annual increases were noted in the indices of the following commodity groups during the month:

a.    Alcoholic Beverages and Tobacco, at 7.8 percent from 9.0 percent;
b.    Clothing and Footwear, 4.8 percent from 5.5 percent;
c.    Furnishings, Household Equipment and Routine Household Maintenance, at 4.7 percent from 5.3 percent;
d.    Health, at 4.0 percent from 4.5 percent;
e.    Recreation, Sport and Culture, at 8.5 percent from 8.9 percent;
f.    Restaurants and Accommodation Services, at 10.0 percent from 11.0 percent;
g.    Financial Services, at -0.4 percent from 0.0 percent; and
h.    Personal Care, and Miscellaneous Goods and Services, 3.3 percent from 3.7 percent.
 

Meanwhile, the indices of the following commodity groups retain their previous month's annual rates: (Table 3)

a.    Information and Communication, at 0.4 percent; and
b.    Education Services at 1.8 percent;

Table 3. Year-on-Year Inflation by Commodity Groups 
Sultan Kudarat Province in Percent 
January 2023, December 2023 and January 2024 (2018=100)

1.2 Main Contributors to the Headline Inflation

The top three commodity groups contributing to the January 2024 headline inflation were the following:

a.   Food and Non-Alcoholic Beverages with 70.2 percent share or 2.67 percentage points;
b.   Restaurants and Accommodation Services with 17.7 percent share or 0.67 percentage point; and
c.   Alcoholic Beverages and Tobacco with 6.1 percent share or 0.23 percentage point.

2.    Food Inflation

Food groups posted lower inflation at 5.5 percent in January 2024, compared to 10.1 percent in December 2023. In January 2023, food inflation was higher at 9.5 percent.

2.1 Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in January 2024 was primarily influenced by the lower annual growth rate of Vegetables, Tubers, Plantains, Cooking Bananas and Pulses at -21.4 percent deflation from -4.4 percent deflation in December 2023. This was followed by Meat and Other Parts of Slaughtered Land Animals at 0.4 percent from 6.6 percent in December 2023, and Cereals and Cereals Products at 23.6 percent during the month from 24.9 percent in December 2023.

In addition, the following food groups contributed to the downward trend of food inflation during the month.

a.    Milk, Other Dairy Products and Eggs at 10.5 percent from 15.3 percent;
b.    Fruits and Nuts at 10.6 percent from 13.4 percent;
c.    Sugar, Confectionery and Desserts at 3.4 percent from 5.0 percent; and
d.    Ready-made food and other food products n.e.c. at 3.3 percent from 4.4 percent.  (Table 4)

Meanwhile, the index of Fish and other seafood in January 2024 showed a deflation at -5.9 percent compared to -5.9 percent in December 2023. Also, Fish and Other Seafood at -5.3 percent deflation compared to -5.5 percent deflation in December 2023. 

Table 4. Year-on-Year Inflation on Food Items, Sultan Kudarat Province
in Percent, January 2023, December 2023 and January 2024
(2018=100)

2.2 Main Contributors to the Food Inflation

The food groups with the highest contribution to food inflation during the month were the following:

a.    Cereals and Cereals Products with 118.4 percent share or 6.51 percentage points;
b.    Milk, Other Dairy Products and Eggs with 8.0 percent share or 0.44 percentage points.
c.    Fruits and Nuts with 4.8 percent share or 0.26 percentage points. 
 

Purchasing Power of Peso

The Purchasing Power of Peso (PPP) measures the current value of the peso in reference to its value in the base year. It has an inverse relationship with the Consumer Price Index (CPI), which means that if the CPI increases, the PPP decreases.

Table 5. Purchasing Power of Peso (PPP) in Sultan Kudarat Province
January to December - 2018, 2019, 2020, 2021, 2022, 2023 
and January 2024
(2018=100)

Figure 2:  Purchasing Power of Peso (PPP)
2018, 2019, 2020, 2021, 2022, 2023 and January 2024
(2018=100)

Table 5. and Figure 2. showed that the PPP for the province of Sultan Kudarat dropped to PhP 0.81 in January 2024 from PhP 1.00 in 2018.

This means that the peso in 2018 is only worth 81 centavos in January 2024, or an average Sultan Kudarateños household needs PhP 124.20 to purchase the same volume of goods and services worth P100.00 in 2018.  
 

Approved for Release:

HERLITA G. CARAAN
Chief Statistical Specialist

For inquiries, please contact:

MARIA ANNA LIZA S. MOGAN
Statistical Analyst
Provincial Focal Person