Inflation has continued to be low this year, with the National Statistics Bureau’s latest Consumer Price Index report showing a modest increase for the month of July. The overall inflation rate now stands at 2.04 per cent, slightly up from June’s 1.84 per cent.
While the shift is small, it marks a subtle increase in the cost of living, with prices adjusting steadily. The subtle increase is being driven by rising costs in several key areas.
Household furnishings and routine maintenance saw the highest price hikes, followed by clothing, footwear, and a range of miscellaneous goods.
Look at year on year comparisons between July this year and last year, in the food sector, inflation edged up to 2.27 per cent.
Meanwhile, prices for alcoholic drinks and betel nuts remained relatively stable, with a slight increase of just under 1 per cent.
N-food inflation also rose over the past year, reaching 1.72 per cent in July, pushed up by a 3.38 per cent increase in clothing and a 3.55 per cent rise in household furnishings.
Transport costs have also seen a noticeable jump of 2.87 per cent.
Starting last month, the NSB has started to publish separate consumer price indexes for different regions.
In the capital city, inflation grew by 1.41 per cent, with food prices climbing nearly two per cent.
The central region, however, saw the highest inflation rate at 2.27 per cent, indicating a stronger upward pressure on prices compared to other regions.
Looking at the bigger picture, the national average inflation from January to July 2024 has reached 3.5 per cent.
The NSB report also highlights that the purchasing power of the ngultrum continues to erode.
Over the past year, the value of Nu 100 has dropped to the equivalent of just Nu 56.5 when compared to December 2012 prices, marking a two per cent decline in purchasing power.
Deki Lhazom
