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Consumer Price index records a 4.17 percent increase

July 30, 2020
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The year-on-year consumer price index in May this year increased by 4.17 per cent from May last year. According to the National Statistics Bureau, this means, on average the consumers are paying 4.17 per cent more than what they paid in May last year for the same goods and services consumed by the household.

The changes recorded for year-on-year CPI in May for the food items were 8.76 per cent and the non-food at 0.42 per cent. The reports point out that the higher rates in May this year for food items compared to that of May last year is due to a higher increase in the prices of food groups; and alcoholic beverages and betel nuts.

On the other hand, from April to May this year, there were no changes in communication and education prices as the prices remained the same over the period. According to the NSB, communication prices are mainly for mobile charges that do not change that often. And for education, it is mainly the education fees, which are revised only in February for schools and in July for colleges.

The CPI is a measure of average price changes in the basket of goods and services purchased by households over time. It shows how much, on average the prices of goods and services have increased or decreased from a particular reference period.

Meanwhile, the purchasing power of ngultrum has dropped by 5.6 per cent since May last year until May this year due to the price increase in the economy.

Tshering Zam

 

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