A. Sarangani Province

1. Overall Inflation

The headline inflation in Sarangani Province further recorded a deflation of -0.4 percent in January 2025 from -0.3 percent in December 2024. In January 2024, the inflation rate was higher at 4.7 percent.  (Table A and Figure 1)
 

1.1 Main Drivers to the Downward Trend of the Overall Inflation (Table B)

The downtrend in the province’s inflation rate in January 2025 was primarily influenced by the slower annual decline in the index of food and non-alcoholic beverages at 2.3 percent from 2.0 percent inflation in December 2024. This was followed by housing, water, electricity, gas and other fuels at -0.3 percent in January 2025 from 0.4 percent in December 2024. The index of information and communication also contributed to the downtrend with zero inflation during the month from 0.3 percent in December 2024.

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

a. Alcoholic beverages and tobacco, 5.3 percent from 3.5 percent;
b. Furnishings, household equipment and routine household maintenance, 1.1 percent from 0.8 percent;
c. Health, 2.0 percent from 1.8 percent;
d. Transport, 2.1 percent from 1.3 percent; and
e. Personal care, and miscellaneous goods and services, 4.8 percent from 4.4 percent.

The following are the indices of the commodity groups that retained their previous month’s inflation rates in January 2025:

a. Clothing and footwear, at 1.1 percent;
b. Recreation, sport and culture, at 4.7 percent;
c. Education services, at zero inflation;
d. Restaurants and accommodation services, at zero inflation; and
e. Financial services, at zero inflation. 
 

1.2 Main Contributors to the Headline Inflation

The food and non-alcoholic beverages, which registered an inflation rate of -2.3 percent in January 2025, contributed 249.0 percent share or -1.0 percentage point to overall inflation for all income households.

Other main contributor to the January 2025 inflation was the housing, water, electricity, gas and other fuels with 9.4 percent share or -0.04 percentage point.

2. Food Inflation

Food inflation at the provincial level further decreased to -2.6 percent in January 2025 from -2.2 percent in December 2024. In January 2024, food inflation was higher at 7.8 percent.

2.1 Main Drivers to the Downward Trend of the Food Inflation (Table C)

The deceleration of food inflation in January 2025 was primarily brought about by the faster annual decline in the index of cereals and cereal products, particularly rice at 13.6 percent from 8.8 percent in December 2024. This was followed by fish and other seafood at 2.0 percent during the month from 4.6 percent in December 2024. Fruits and nuts also contributed to the downtrend at 1.6 percent during the month from 5.5 percent in December 2024.

Moreover, lower inflation rates during the month were observed in the index of milk, other dairy products, and eggs at 4.7 percent in January 2025 from 5.7 percent in the previous month. The index of corn recorded faster annual decline of 18.7 percent during the month from 17.0 percent in December 2024.

In contrast, faster annual increases were noted in the indices of oils and fats at 21.7 percent during the month from 19.7 percent, and ready-made food and other food products not elsewhere classified at 4.3 percent from 3.2 percent in December 2024.

Furthermore, slower annual decline were observed in the indices of flour, bread and other bakery products, pasta products, and other cereals at 1.5 percent from 3.4 percent of the previous month, and sugar, confectionery and desserts at 3.8 percent in January 2025 from 5.2 percent in December 2024.  

In addition, the indices of meat and other parts of slaughtered land animals recorded an annual increment of 1.6 percent during the month from a 0.3 percent annual decline in the previous month. Also, vegetables, tubers, plantains, cooking bananas and pulses was observed at 6.9 percent from a 2.0 percent annual decline in December 2024.

2.2 Main Contributors to the Food Inflation

Food inflation shared 272.3 percent share or -1.1 percentage point to the overall inflation in January 2025. The top three food groups in terms of contribution 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 163.8 percent share or -4.3 percentage point;
b. Sugar, confectionery and desserts with 3.9 percent share or -0.1 percentage point; and
c. Fruits and nuts with -1.9 percent share or 0.1 percentage point.
 

The Purchasing Power of Peso (PPP) in Sarangani Province decreased to PhP 0.76 in January 2025 from PhP 0.77 in December 2024. This implies that a peso in 2018 is only worth 76 centavos in January 2025, or you need PhP 131.50 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 2024. By comparison, the PPP in 2024 was 0.76 which implies that the PhP 1.00 in 2018 as the base year, values only PhP 0.76 in 2024. (Figure 2)