A. Sarangani Province

1. Overall Inflation

The headline inflation in Sarangani Province dropped to 1.2 percent in October 2024 from 1.5 percent in September 2024. This was lower than both the regional and national levels at 2.3 percent. In October 2023, the inflation rate was higher at 5.2 percent. The provincial average inflation rate for the last ten (10) months of the year registered at 4.0 percent. (Table A and Figure 1).

1.1 Main Drivers to the Downward Trend of the Overall Inflation

The downtrend in the province’s inflation rate in October 2024 was primarily influenced by the slower annual increment of housing, water, electricity, gas and other fuels at -1.6 percent from 1.3 percent inflation in September 2024. This was followed by furnishings, household equipment and routine household maintenance at -0.3 percent in October 2024 from 0.5 percent in September 2024. The index of health also contributed to the downtrend with an inflation rate of 2.2 percent during the month from 3.4 percent in September 2024.

Additionally, the following commodity groups noted lower inflation rates during the month:

a. Alcoholic beverages and tobacco, 2.2 percent from 2.7 percent; and
b. Recreation, sport and culture, 4.6 percent from 6.7 percent. (Table B)

On the contrary, the following commodity groups registered faster annual increments during the month:

a. Clothing and footwear, 0.4 percent from 0.2 percent;
b. Transport, -2.1 percent from -3.2 percent; 
c. Information and communication, 0.3 percent from 0.1 percent; and
d. Personal care, and miscellaneous goods and services, 3.9 percent from 3.7 percent. (Table B)

The following are the commodity groups that retained their previous month’s inflation rates:

a. Food and non-alcoholic beverages, at 2.4 percent;
b. Education services, at zero percent;
c. Restaurants and accommodation services, at zero percent; and
d. Financial services, at zero percent. (Table B)
 

1.2 Main Contributors to the Overall Inflation

The following commodity groups were the top three contributors to the October 2024 overall inflation for all income households:

a. Food and non-alcoholic beverages with 104.6 percent share or 1.3 percentage points;
b. Personal care and miscellaneous goods and services with 16.7 percent share or 0.2 percentage point; and
c. Alcoholic beverages and tobacco with 6.4 percent share or 0.1 percentage point.

2. Food Inflation

Food inflation at the provincial level increased to 2.5 percent in October 2024 from 2.4 percent in September 2024. In October 2023, food inflation was higher at 7.5 percent. (Table C)

2.1 Main Drivers to the Upward Trend of the Food Inflation

The acceleration of food inflation in October 2024 was due to the faster inflation rate in fish and other seafood with 6.2 percent from 2.1 percent in September 2024. This was followed by vegetables, tubers, plantains, cooking bananas, and pulses with -8.4 percent during the month from -9.7 percent in September 2024. The index of sugar, confectionery and desserts also contributed to the uptrend with -9.5 percent during the month from -10.7 percent in September 2024. (Table C)

Faster annual increments were also noted in the indices of the following food groups during the month:

a. Rice, 5.6 percent from 2.7 percent;
b. Flour, bread and other bakery products, pasta products, and other cereals, 3.8 percent from 3.4 percent; 
c. Oils and fats, 6.5 percent from 4.9 percent;
d. Ready-made food and other food products n.e.c., 7.2 percent from 6.6 percent. (Table C)

In contrast, slower annual growth rates during the month were recorded in the indices of the following food groups:

a. Corn, -5.0 percent from 11.7 percent;
b. Meat and other parts of slaughtered land animals, -0.4 percent from 0.6 percent;
c. Milk, other dairy products, and eggs, 7.1 percent from 7.2 percent; and
d. Fruits and nuts, 12.7 percent from 21.3 percent. (Table C)

2.2 Main Contributors to the Food Inflation

Food inflation contributed 99.0 percent or 1.2 percentage points to the October 2024 overall inflation.

Among the food groups, the main contributors to the food inflation during the month were the following:

a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, pasta products, and other cereals, with 49.3 percent share or 1.2 percentage points;
b. Fish and other seafood, with 41.3 percent share or 1.0 percentage point; and
c. Milk, other dairy products and eggs, with 18.7 percent share or 0.5 percentage point.

The Purchasing Power of Peso (PPP) in Sarangani Province increased to 0.77 in October 2024 from 0.76 in September 2024. This means that a peso in 2018 is only worth 0.77 centavos in October 2024, or you would need PhP 130.30 to purchase the same volume of goods and services that cost Php 100.00 in 2018.

The PPP is inversely related to inflation rate. Therefore, as the inflation rate decreases, PPP inclines. In Sarangani Province, PPP has been decreasing on the average of 0.04 annually from 2018 to 2023. By comparison, the PPP in 2023 was 0.78 which implies that the PhP 1.00 in 2018 as the base year, values only Php 0.78 in 2023. (Figure 2)