While the inflation of the central region of the country was highest with 2.27%
The overall inflation increased to 2.04% in July 2024 from 1.84% in June 2024, higher by 0.20 percentage points as compared to previous month.
Across regions, the inflation rate of the July month this year were recorded at 2.27% in the central region of the country, 1.42% in the western region, 1.41% in the capital, and 1.32% in the eastern region.
This brings the national average inflation from January to July 2024 to 3.53%, according to the latest Consumer Price Index (CPI) report released by National Statistic Bureau (NSB).
According to the Bureau, the upward trend in inflation was mainly driven by furnishings, household equipment, and routine household maintenance, Clothing and footwear and Miscellaneous goods.
Similarly, the year on year food inflation increased to 2.27% in July 2024. Within the food category, the food and non-alcoholic beverages index recorded an increase of 2.39%, and the alcoholic beverages and betel nuts index saw an increase of 0.91%.
While, the year on year non-food inflation increased to 1.72% in July 2024, up by 0.17% points from June 2024.
The upward trend in the non-food category was driven by an increase of 3.38% in the Clothing and footwear index, an increase of 3.55% in Furnishing, household equipment and routine household maintenance index, and an increase of 3.07% in miscellaneous goods and services index.
Central CPI
In July 2024, the month-on-month inflation for the central region increased to 2.27% compared to the previous month. Both the food and non-food indices recorded an increase.
The Food inflation increased to 3.28%t, largely driven by a 3.57% increase in food and non-alcoholic beverages index, and a 0.15% increase in the Alcoholic beverages and betel nuts index.
Similarly, the Non-food inflation increased to 1.29%, mainly driven by increase in clothing and footwear index to 3.33%, transport index to 3.00% and that of recreation and culture to 0.81%, amongst others.
Western CPI
The month to month inflation for the July month in the western region rose to 1.42% with an increase in the indices of both the food and non-food, according to the NSB.
According to the Bureau, the upward trend in food inflation was mainly driven b a 1.50% increase in food and non-alcoholic beverages index and a 0.43% increase in alcoholic beverages and betel nuts index.
While the non-food inflation in western region saw an increase of 1.42%, up by 2.43% points from June 2024.
Capital CPI
The inflation for the capital city rose to 1.41% compared to June 2024. This increase was driven by a 1.98% rise in food index compared to 0.89% increase in non-food index.
Food inflation increased to 1.98% and as of the non-food category, the clothing and footwear index increased to 1.94% and the transport index to 2.14%, amongst others.
Eastern CPI
In the eastern region, the inflation rate increased to 1.32% from -0.01% in the previous month.
The food inflation in the eastern region increased to 1.51%t, up from 0.83% in the previous month and the non-food inflation increased to 1.09%, up from -0.98% in the previous month.
Meanwhile, the CPI includes the goods and services bought by households. A representative sample of these goods and services is selected based on household expenditure data.
According to the NSB, prices for these sampled goods and services are collected from urban areas in the 20 Dzongkhags at different frequencies monthly, quarterly, and annually, depending on how often the prices change.
To capture the price dynamics across various regions of the country, five different CPIs are being published monthly by the Bureau, which includes, national level CPI, eastern CPI, western CPI, capital CPI and central CPI.
By Sherab Dorji, Thimphu
