The cost of living in Bhutan is rising and it is changing people’s lives. Rising fuel prices have led to soaring prices of some commodities and it is digging deep into the pockets of low-income families. According to the National Statistics Bureau, food prices went up by more than 3.5 per cent in May this year as compared to May last year.
In the capital city, daily wage earners like Abi Chandra Sanyasi who works for Thimphu Thromde are feeling the burn.
“If I go to the vegetable market with Nu 1,000 to buy vegetables, I just get enough to last for a week. Increasing prices is affecting us a lot,” he said.
Inflation is quickly devouring his salary of around Nu 10,000 a month and he says he can’t cut back on food.
“Today, a kilogram of chilli costs Nu 300 or 400. The price of rice has reached the highest. And so did the price of the vegetables. Now if we want to have our kitchen garden, there is not enough space. We buy everything. Some have more children. They have to educate their children and it’s a huge expenditure,” said Abi Chandra Sanyasi.
According to National Statistics Bureau, the consumer price rose by almost 5.95 per cent in May compared to the same month last year. Food prices went up by more than 3.5 per cent during the same period while non-food recorded a higher increase at a little over 8 per cent.
As a result of the price increase, the purchasing power of Ngultrum has dropped by 5.6 per cent from May last year to May this year. What could be bought for Nu 60 in 2012 now cost Nu 100. Increasing fuel prices is the main driver of this.
And people who live pay check to pay check are the hardest hit. They spend a lot of their money on rent and utilities. And for Abi, much of his salary is gone into paying his monthly loan availed to build a house in his village. He sometimes relies on his wife’s earnings to carry them through.
With few signs of inflation easing, consumers like Abi are increasingly turning to getting credits from shops.
“We don’t get vegetables for credit. We have a shop nearby from where we buy essentials like rice, oil and salt for credit. When we get a monthly salary, we pay them back and again we bring things for credit. While doing this, we have no money left with us,” added Abi Chandra Sanyasi.
As per the Bhutan Living Standard Survey 2017, there are more than 25,000 households that fall under the lower consumption category which could be used as a proxy for lower-income households. This means approximately 25,000 families fall under the lower-income group.
And while the government waits to intervene, it will be a long struggle for those families to put food on the table. The reason is simply “Inflation”.
Samten Dolkar
Edited by Sangay Chezom
