admin- Headline Inflation (Year-on-Year) – National level
The headline or overall inflation increased to 2.05 percent in August 2024 from 2.04 percent in July 2024. This brings the national average inflation from January to August 2024 to 3.35 percent. The upward trend was primarily driven by Food and non-alcoholic beverages, Furnishings, household equipment and routine household maintenance, and Clothing & footwear.
1.1 Food Inflation
The Food inflation increased to 3.08 percent in August 2024. Within the Food category, the Food & non-alcoholic beverages index recorded an increase of 3.47 percent, while the Alcoholic beverages & betel nuts index saw a drop of -1.59 percent.
1.2 Non-food Inflation
The Non-food inflation decelerated to 0.99 percent in August 2024 from 1.72 percent in July 2024. This downward
trend in the non-food category was driven by decrease in the indices of Transport and Communication to -1.11 percent and -1.60 percent, respectively. However, the Housing & utilities index recorded an increase of 0.56 percent.
- Headline Inflation (Month-on-Month) – National Level
Month-on-month inflation decelerated to 0.35 percent in August 2024, down by 1.16
percentage points compared to July 2024. This was primarily driven Alcoholic beverages
& betel nuts (-1.00%), Transport (-0.75%) and Communication (-0.23%).
- Regional Headline Inflation (Month-on-Month) –Capital City – Thimphu
Month-on-month inflation for the capital city rose to 1.41 percent compared to June 2024. This increase was driven by a 1.98 percent rise in food index compared to 0.89 percent increase in non-food index.
- Central Region (Bumthang, Dagana, Sarpang, Zhemgang, Trongsa, Tsirang)
In August 2024, the month-on-month inflation for the central region increased to 0.24 percent compared to the previous month. Both the food and non-food indices recorded an increase.
- Western Region (Gasa, Punakha, Thimphu, Wangdue Phodrang, Haa, Paro, Samtse, Chhukha)
In July 2024, the month-on-month headline inflation of western region rose to 0.39 percent. This was mainly driven by increase in the index of Food.
- Eastern Region (Monggar, Trashigang, Trashi Yangtse, Lhuentse, Pema Gatshel, Samdrup Jongkhar)
In August 2024, the month-on-month headline inflation rate for the eastern region increased to 0.47 percent, mainly driven by an increase in the Food index.
- Annual average Headline Inflation for 2023 – National Level
The annual average national headline inflation from January 2023 to December 2023 eased to 4.23 percent in 2023, down by 1.41 percentage points from 5.64 percent in 2022. The downward trend in inflation were primarily driven by a slower annual increment in non-food index which decelerated to 4.44 percent in 2023. Average food inflation rose to 3.97 percent, up by 0.02 percentage points from 3.95 percent in 2022. This moderate rise in food index was mainly driven by increase in the index of alcoholic beverages and betel nuts, which rose to 4.62 percent, an increase by 3.46 percentage points from 1.16 percent in 2022.
In 2023, the non-food index decelerated to 4.44 percent, from 7.10 percent in 2022. This deceleration was primarily due to a drop in communication and transport index to 1.06 percent and 0.85 percent respectively. However, significant drivers of inflation in the non-food category included health with an increase of 12.47 percent, housing and utilities with an increase of 8.21 percent, and clothing and footwear with an increase of 6.90 percent, among others.
- Purchasing Power of the Ngultrum – National Level
The purchasing power of measured by CPI, stood at Nu. 56.3 as of August 2024 as compared to December 2012. This means, Nu. 100 in August 2024 is worth only Nu. 56.3 at December 2012 prices. The Purchasing Power of the Ngultrum has eroded by 2 percent in the last year (from August 2023 to August 2024) due to price increases in the economy.
For detailed information, please visit our website at https://www.nsb.gov.bt/publications/price-statistic/consumer-price-index/