Consumer Price Index 12 April, 2011 - After a sharp drop in 2009 to 2.96 percent, Bhutan’s inflation rate has been steadily increasing to reach 9.67 percent in the first quarter of 2011. In the last quarter of 2010, the inflation rate was 7.14 percent.
The national statistic bureau’s recent release of the consumer price index, for the first quarter ending 31 March this year, states that the year on year increase in inflation was recorded at 9.64 percent. Food prices contributed 10.53 percent, while non food prices contributed 9.15 percent to the overall inflation respectively.
Compared to the previous quarter of 2010, the inflation within the three months of January, February and March increased by 2.07 percent, compared to 2.25 percent in the previous quarter of 2010.
In the present quarter, food prices contributed 2.71 percent, while non food prices contributed 1.72 percent to the overall inflation rate.
The consumer price index measures inflation by comparing the present price of a basket of goods that include food and non food with the consumers’ ability to purchase in the earlier period.
The purchasing power of the ngultrum dropped to Nu 64 at 2003 base price. Over the last seven years, the ngultrum has depreciated by 36 percent.
By Nidup Gyeltshen