Date of Release:13 June 2025
Reference No. 25R1280-SR-038
A. Sarangani Province
1. Overall Inflation
The headline inflation in Sarangani Province posted an annual decline at 3.3 percent in May 2025 from an annual drop at 2.5 percent in April 2025. In May 2024, the inflation rate was higher at 5.8 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 was primarily influenced by the annual decline in the index of housing, water, electricity, gas and other fuels at 2.6 percent in May 2025 from a 1.4 percent annual increase in the previous month. This was followed by the faster annual decline of food and non-alcoholic beverages at 6.2 percent during the month from a 5.7 percent annual drop in April 2025.
Moreover, slower annual growths were observed in the indices of clothing and footwear at 0.7 percent during the month from 0.9 percent in April 2025; furnishings, household equipment and routine household maintenance at 0.8 percent in May 2025 from 1.0 percent in the previous month; and recreation, sport and culture with 3.5 percent during the month from 3.6 percent in April 2025.
In contrast, higher inflation rates were noted during the month in the indices of health at 1.4 percent from 1.2 percent in April 2025; information and communication at 0.3 percent from a zero percent annual rate; and personal care, and miscellaneous goods and services at 4.0 percent from 3.8 percent in the previous month.
Meanwhile, slower annual decline was recorded in the index of transport at 3.5 percent in May 2025 from an annual drop at 3.7 percent in April 2025.
The indices of the following commodity groups retained their respective previous month’s inflation rates:
a. Alcoholic beverages and tobacco, at 5.3 percent;
b. Education services, at zero inflation;
c. Restaurants and accommodation services, at zero inflation; and
d. Financial services, at zero inflation.
1.2 Main Contributors to the Headline Inflation
The top three commodity groups that contributed to the May 2025 overall inflation were the following:
a. Food and non-alcoholic beverages with 97.1 percent share or -3.2 percentage point;
b. Housing, water, electricity, gas and other fuels with 10.3 percent share or -0.3 percentage point; and
c. Transport with 9.9 percent share or -0.3 percentage point.
2. Food Inflation
Food inflation at the provincial level further declined to 6.8 percent in May 2025 from a 6.2 percent annual decrement in April 2025. In May 2024, food inflation was higher at 9.3 percent.
2.1 Main Drivers to the Downward Trend of the Food Inflation (Table C)
The downtrend in food inflation in May 2025 was primarily brought about by the faster year-on-year decline of vegetables, tubers, plantains, cooking bananas and pulses at 12.3 percent from an annual decrease at 8.2 percent in April 2025. The index of corn also recorded a faster annual decline at 23.4 percent in May 2025 from a 22.1 percent annual drop in the previous month.
Moreover, lower inflation rates were observed during the month in the indices of meat and other parts of slaughtered land animals at 2.1 percent from 3.8 percent; fish and other seafood at 0.1 percent from 0.4 percent; oils and fats at 10.7 percent from 13.2 percent; and ready-made food and other food products n.e.c. at 1.7 percent from 3.3 percent in the previous month.
In contrast, higher annual growth rates were recorded in the indices of flour, bread, and other bakery products, pasta products, and other cereals at 5.9 percent in May 2025 from 3.6 percent in the previous month; milk, other dairy products and eggs at 8.4 percent during the month from 7.7 percent in April 2025; and fruits and nuts at 3.1 percent in May 2025 from 1.8 percent in April 2025.
Furthermore, slower annual decrements were observed during the month in the indices of rice at 22.6 percent, and sugar, confectionery and desserts at 1.3 percent from their respective year-on-year decline at 22.8 percent and 2.4 percent in April 2025.
2.2 Main Contributors to the Food Inflation
Food inflation contributed 100.4 percent share or -3.3 percentage point to the overall inflation in May 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 96.2 percent share or -6.5 percentage point;
b. Vegetables, tubers, plantains, cooking bananas and pulses with 20.6 percent share or -1.4 percentage point; and
c. Sugar, confectionery and desserts with 0.6 percent share or -0.04 percentage point.
3. Purchasing Power of Peso
The Purchasing Power of Peso (PPP) in Sarangani Province remained at PhP 0.77 in May 2025 from the previous month. This implies that a peso in 2018 is only worth 77 centavos in May 2025, or you need PhP 129.10 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. It can be observed that as the CPI goes up, the PPP or the real value of the peso goes down. 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)
