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Inflation rate reaches 2.58% amid rising fuel prices in September

November 15, 2018
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Amid increasing fuel prices in India and in the country throughout the summer, the inflation rate hit a five-month high in September at 2.58 per cent. This is an increase of 0.58 percentage point compared to August.

However, prices of locals’ goods and services increased at a slower speed compared to imported goods and services.

Inflation is a continued increase in the price level of goods and services in an economy over a period of time.

The inflation rate looks at the speed at which prices of goods and services are increasing over time.

The inflation rate was slowing down before fuel prices in India increased on a daily basis since August. In September, the prices of fuel and lubricants increased by 4.53 per cent in the country compared to an increase of 2.44 per cent in the month of August.

Therefore, in September, prices of imported goods and services increased by 3.25 per cent compared to local goods and services which increased by just 1.85 per cent.

Overall, food prices saw a rapid increase of 5.24 per cent in September compared to non-food which increased by 2.52 per cent.

The National Statistics Bureau (NSB) compiles the monthly consumer price index bulletin. The NSB tracks the price movements of 151 items in 20 districts and two major urban areas to assess the inflation rate.

Bhutan’s average inflation rate since the beginning of 2013 stands at 5.40 per cent.

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