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Inflation at its lowest

June 5, 2015
in Uncategorized
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Overall InflationBhutan’s consumer inflation fell to its lowest since last year beginning reaching 5.6 percent in April this year. In the previous month it was recorded at 6.2 percent. Food prices slowed down to 3.8 percent in April from 4.7 percent and non-food prices slowed to 6.9 percent from 7.2 percent in the same months.

When it comes to month on month inflation, prices of imported goods and services deflated at negative 0.18 percent (-0.18 percent). The consumer price index prepared by the national statistics bureau attributed this to decrease in the prices of imported food items.

National Statistics Bureau’s Director General, Kinga Tshering, over the telephone said, inflation has been decreasing in India and hence it has been following a similar trend in Bhutan.

Bhutan’s inflation closely follows that of India since Bhutan imports over 70 percent of its commodities from India, the director general said.

However, prices of domestic goods and services saw marginal increase in April.

The decrease in the rate of inflation came despite increase in fuel prices since February, this year.

The purchasing power of Ngultrum decreased by 17 percent since 2012. This means Nu 100 in 2012 is worth only Nu 83 today.

Bhutan’s consumer inflation is calculated on 436 goods and services across 20 districts and two major urban areas.

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