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Inflation rate up by 0.53 percent in the first quarter of 2020

June 5, 2020
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The inflation rate for the first quarter of 2020 recorded an average increase of 0.53 percent as compared to the previous year according to the Producer Price Index report released by the National Statistic Bureau.

The inflation rate as measured by the Producer Price Index (PPI) was mainly due to an increase in prices in the manufacturing and transport sectors.

PPI is the measure of the average price change of goods and services over time. It measures price change from the producer’s perspective.

According to the report, inflation was mainly due to an increase in the manufacturing sector by 2.29 percent and 3.58 percent in February and March. The report stated that within the manufacturing sector, an increase in the price of basic metals was the main contributor, which led to the overall increase.

It also reported that inflation in the transport sector increased by 0.47 percent due to the fluctuation in the exchange rate and increase in the bus fare.

According to the PPI report, no inflation was recorded in the mining and quarrying, logging, electricity and gas, water supply, and information and communication sector as prices remained the same in the first quarter of the year.

 

Tshering Zam

 

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