The Consumer Price Index (CPI) for April 2024 increased by 4.87% compared to April 2023. This increase is primarily due to a 5.53% rise in the food index and a 4.31% rise in the non-food index.
According to the CPI bulletin for April 2024 released by the National Statistics Bureau (NSB), all major divisions saw an increase in their indices, except for the communication sector. The communication index decreased by 8.57%, while indices for miscellaneous goods and services increased by 8.34%, housing and utilities by 6.26%, and transport by 5.50%.
The month-on-month CPI in April 2024 increased by 1.50% from March 2024. The food index increased by 0.62%, and the non-food index increased by 2.26%. Housing and utilities saw a month-on-month increase of 6.99%, and education increased by 3.91%. The index for food and non-alcoholic beverages increased by 0.70% from March, while the index for alcoholic beverages and betel nuts decreased by 0.52%. The communication index decreased by 1.61%.
The NSB also reported that the prices of household goods and services increased by 4.23% from 2022 to 2023, a decrease of 1.41 percentage points compared to a 5.64% increase in 2022. The rate of increase in non-food items was 4.44% in 2023, compared to a 7.10% increase in 2021.
Among the twelve major groups last year, health recorded the highest increase at 12.47%, while transport had the lowest increase at 0.85%. The annual CPI increased for all divisions except communication, which decreased by 1.06%.
The monthly CPI bulletin also highlighted noticeable increases in the indices for food and non-alcoholic beverages, housing and utilities, health, recreation and culture, education, and restaurants and hotels. The index for alcoholic beverages and betel nuts increased by 3.46 percentage points, and housing and utilities increased by 3.11 percentage points. The health index rose by 8.27 percentage points, and the index for recreation and culture increased by 4.36 percentage points, while transport saw a significant decrease of 11.74 percentage points from 2022 to 2023.
The purchasing power of the Ngultrum, as measured by CPI, was Nu 55.5 in April 2024 compared to December 2012. This means that Nu 100 in March 2024 was worth only Nu 55.5 at December 2012 prices. The purchasing power of the Ngultrum has dropped by 4.64% over the past year, from April 2023 to April 2024, due to rising prices in the economy.
The CPI measures the average change in prices of a fixed basket of goods and services bought by households over time. It is a widely used economic indicator that helps track inflation and the purchasing power of consumers. The CPI basket includes 113 items (314 varieties) classified according to the Classification of Individual Consumption According to Purpose (COICOP), with about 450 outlets selected for pricing.
By Sherab Dorji, Thimphu
