A. Sarangani Province

1. Overall Inflation

The headline inflation in Sarangani Province further declined to 1.5 percent in February 2025 from an annual decline of 0.4 percent in January 2025. In February 2024, the inflation rate was higher at 5.0 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 February 2025 was primarily influenced by the faster year-on-year decline in the index of food and non-alcoholic beverages at 3.7 percent from a 2.3 percent annual decrease in January 2025. This was followed by transport with an annual decline of 0.8 percent in February 2025 from 2.1 percent annual increase in January 2025. The index of housing, water, electricity, gas and other fuels also contributed to the downtrend with a faster year-on-year decline of 1.3 percent inflation during the month from 0.3 percent annual drop in the previous month.

Moreover, slower annual increment was observed in the index of personal care, and miscellaneous goods and services at 4.3 percent during the month from 4.8 percent in January 2025.

Meanwhile, higher inflation rate was noted in the index of recreation, sport and culture at 4.8 percent in February 2025 from 4.7 percent in January 2025.

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

a. Alcoholic beverages and tobacco, at 5.3 percent;
b. Clothing and footwear, at 1.1 percent;
c. Furnishings, household equipment and routine household maintenance, at 1.1 percent;
d. Health, at 2.0 percent;
e. Information and communication, at zero inflation;
f. Education services, at zero inflation;
g. Restaurants and accommodation services, at zero inflation; and
h. Financial services, at zero inflation. 

1.2 Main Contributors to the Headline Inflation

The top three commodity groups contributing to the February 2025 overall inflation were the following:

a. Food and non-alcoholic beverages with 117.9 percent share or -1.8 percentage point.

b. Housing, water, electricity, gas and other fuels with 12.0 percent share or -0.2 percentage point; and
c. Transport with 4.2 percent share or -0.1 percentage point.

2. Food Inflation

Food inflation at the provincial level further declined to 4.0 percent in February 2025 from a 2.6 percent annual decrement in January 2025. In February 2024, food inflation was higher at 8.0 percent.

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

The deceleration of food inflation in February 2025 was primarily brought about by the year-on-year decline in the index of vegetables, tubers, plantains, cooking bananas and pulses at 0.3 percent from 6.9 percent annual increase in January 2025.

Faster annual decrements were observed during the month in the indices of corn at 26.7 percent, and rice at 15.0 percent from their respective year-on-year decreases of 18.7 percent and 13.6 percent in January 2025.

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

a. Meat and other parts of slaughtered land animals, 1.0 percent from 1.6 percent; 
b. Fish and other seafood, 1.3 percent from 2.0 percent; and
c. Ready-made food and other food products, 3.6 percent from 4.3 percent.

In contrast, faster annual increases were noted in oils and fats at 21.9 percent during the month from 21.7 percent in the January 2025 and, fruit and nuts at 2.8 percent in February 2025 from 1.6 percent in the previous month.

Furthermore, annual increase were registered in the index of flour, bread and other bakery products, pasta products, and other cereals at 2.5 percent from an annual decline of 1.5 percent in the previous month.  

In addition, slower annual decrement was observed in sugar, confectionery and desserts at 1.5 percent in February 2025 from 3.8 percent annual drop in January 2025.

The index of milk, other dairy products and eggs retained its previous month’s annual rate of 4.7 percent.

2.2 Main Contributors to the Food Inflation

Food inflation contributed 122.4 percent share or -1.9 percentage point to the overall inflation in February 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 127.0 percent share or -5.1 percentage point;
b. Sugar, confectionery and desserts with 1.1 percent share or -0.04 percentage point; and
c. Vegetables, tubers, plantains, cooking bananas and pulses with 0.6 percent share or -0.02 percentage point.

The Purchasing Power of Peso (PPP) in Sarangani Province increased to PhP 0.77 in February 2025 from PhP 0.76 in January 2025. This implies that a peso in 2018 is only worth 77 centavos in February 2025, or you need PhP 130.50 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)