A. General Santos City
1. Overall Inflation
The General Santos City’s headline inflation or overall inflation eased to 0.0 percent in February 2025 from 1.1 percent in January 2025. In February 2024, the inflation rate was higher at 3.5 percent. (Table A and Figure 1)
1.1 Main Drivers to the Downward Trend of Headline Inflation (Table B)
The downward trend in the overall inflation in February 2025 was primarily brought about by the lower year-on-year growth rate of food and non-alcoholic beverages at 0.5 percent from 2.0 percent in January 2025. Also contributing to the downtrend was housing, water, electricity, gas and other fuels with a faster annual decrease of 2.6 percent during the month from 0.4 percent annual drop in January 2025. In addition, the transport recorded an annual decline of 2.0 percent in February 2025 from a 0.1 percent annual increase in the previous month.
Moreover, lower inflation rates were noted in the indices of the following commodity groups during the month:
a. Alcoholic beverages and tobacco, 1.6 percent from 2.9 percent;
b. Furnishings, household equipment and routine household maintenance, zero inflation from 0.2 percent; and
c. Recreation, sport and culture, 0.9 percent from 1.4 percent.
In contrast, higher inflation rates were observed in the indices of health at 3.4 percent during the month from 2.3 percent in January 2025 and personal care and miscellaneous goods and services at 1.5 percent in February 2025 from 1.3 percent in the previous month.
Additionally, the index of restaurants and accommodation services recorded an annual decrease at 0.8 percent in February 2025 from an annual decline of 0.9 percent in January 2025.
Meanwhile, the following were the commodity groups that remained at their respective previous month’s annual rates:
a. Clothing and footwear, 1.1 percent;
b. Information and communication, at 0.0 percent;
c. Education services, at 8.7 percent; and
d. Financial services, at 0.0 percent.
2. Food Inflation
Food inflation in General Santos City decreased to 0.5 percent in February 2025 from 2.0 percent in January 2025. In February 2024, food inflation was higher at 5.6 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 influenced by the faster year-on-year decline of rice at 8.2 percent from 3.5 percent annual decrease in January 2025. This was followed by vegetables, tubers, plantains, cooking bananas and pulses with an annual decline at 1.1 percent during the month from 6.4 percent annual increase in the previous month.
In addition, lower inflation rates during the month were noted in the indices of the following food groups:
a. Corn, 3.8 percent from 3.9 percent;
b. Fish and other seafood, 0.1 percent from 1.7 percent; and
c. Ready-made food and other food products n.e.c., 3.3 percent from 4.2 percent.
On the contrary, higher annual growth rates were observed in the indices of the following food groups during the month:
a. Flour, bread and other bakery products, pasta products, and other cereals, 1.2 percent from 1.1 percent;
b. Meat and other parts of slaughtered land animals, 8.8 percent from 6.5 percent;
c. Milk, other dairy products and eggs, 6.4 percent from 5.4 percent;
d. Oils and fats, 7.5 percent from 7.2 percent; and
e. Fruits and nuts, 7.5 percent from 4.4 percent.
Moreover, slower annual decrement was noted during the month in the index of sugar, confectionery and desserts at 1.0 percent from the year-on-year decrease of 4.2 percent in January 2025.
The Purchasing Power of Peso (PPP) in General Santos City remained at PhP 0.79 in February 2025. This means that a peso in 2018 is only worth 79 centavos in February 2025, or you need PhP 126.0 to purchase the same 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 General Santos City, PPP has been decreasing on the average of 0.04 annually from 2018 to 2024. By comparison, the PPP in 2024 was 0.79 which implies that the PhP 1.00 in 2018 as the base year, values only PhP 0.79 in 2024. (Figure 2)
