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Inflation at 11.3%

June 11, 2014
in Uncategorized
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FM-BudgetReport-NC The National Council members raised concerns on rising inflation as the Finance Minister presented the budget for the financial year 2014- 2015, today. According to the National Statistics Bureau (NSB), the inflation by the end of last year was 11.3 percent, indicating an inflationary pressure in the economy.

On an average, the inflation was 8.7 percent by the end of the financial year 2012-2013 against the average of 10.2 percent in the financial year 2011- 2012. This, according to the NSB, the inflation is mainly driven by food with 9.1 percent and non-food items with 3.1 percent.

The Gasa MP, Sangay Khandu, questioned on the measures put in place by the government to control inflation besides raising pay and taxes.


The Finance Minister said there is nothing much can be done for a small economy that is import driven.

Meanwhile, eminent member Tashi Wangyal said it is not only imports that contribute towards inflation. He said locally produced commodities have been equally contributing towards inflation.

The minister said measures have been initiated to control inflation, some of which includes import substitution through agricultural produce, fishery and enhancing rice production in Gelegphu among others. The deliberation will continue tomorrow.

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