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Highest inflation recorded since 2003

July 31, 2012
in Uncategorized
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The inflation rate in the second quarter of this year has been recorded at 13.55 percent, the highest inflation recorded in the country since 2003. According to a report on consumer price index the inflation was mainly driven by increase in the price of both food and non-food items.

Sharp increase was also seen in the price of narcotic products and perishable commodities such as fruits and vegetables over the last 12 months.

The hike in the price of vegetables is being attributed to restriction on import of vegetables from India. With no price control measures in place, local vegetables are prized highly.

Other factors include increase in transportation charge triggered by road blocks caused by landslides. The report cites the recent rupee crunch as another possible factor.

Meanwhile, the value of Ngultrum has depreciated by 44 percent in the last 9 years.

This means Nu. 100 in 2nd quarter of 2012 is worth only Nu. 56 at 2003 prices.

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