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Food inflation hits 5.45% in February, government prioritizes local production

April 3, 2025
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The inflation has increased since October last year. This is according to the latest Consumer Price Index or CPI. The inflation in February this year reached 3.38 per cent, up from 1.34 per cent in October last year. The inflation is mostly driven by food and non-food items. So, in response to the increasing food inflation, the agriculture and livestock secretary said they are prioritising food production in the country.

According to the National Statistics Bureau, in the last five months, the inflation rose by over 2 per cent.

In February, food inflation increased to 5.45 per cent. Within the food category, food and non-alcoholic beverages recorded an increase of 6 per cent, while the alcoholic beverages and betel nuts saw a drop of -1.13 per cent.

The CPI tracks changes in the prices of goods and services over time based on household expenditure data.

The agriculture secretary highlighted that food price in India, wars in other countries and supply constraints determine the food price in the country. 

Thinley Namgyel, the secretary said “We import quite a lot of rice, almost 70 per cent to 75 per cent of what we consume is imported. So, if the price of rice goes up in India, we pay a higher price here in Bhutan. Similarly, the food inflation is also determined by the supply-side constraints.”

He added that the ministry’s main focus is to produce affordable food within the country. In the 13th Five-Year Plan, the government has set upward targets.

The target is to increase rice, maize, potatoes and milk production among others.

He added that the ministry is creating an enabling environment in terms of investment, infrastructure development and policy intervention for increasing production.

Devika Pradhan & Kelzang Chhophyel 

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