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Inflation continues to drop

July 6, 2015
in Uncategorized
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Inflation continues to dropEven as fuel price increases, Bhutan’s consumer inflation has continued to decrease since October last year, reaching an all time low at 5 percent in May this year.

The drop in inflation was attributed to slowing down of food prices in India. National Statistics Bureau’s Director General, Kinga Tshering said Bhutan’s inflation closely follows that of India since Bhutan imports around 70 percent of goods and services from India.

The Indian government has been laying serious emphasis on controlling food prices. It has allowed farmers to sell fruits and vegetables directly to consumers by eliminating middleman. Favourable monsoon so far has also helped curb inflation.

Besides, domestic inflation also fell from 6 percent to 4.3 percent between April and May this year.

The value of Ngultrum decreased by 17 percent compared to December 2012 price.

This means Nu 100 in 2012 was worth only Nu 83, today. In other words, what Nu 100 can buy today required only Nu 83 in 2012.

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