The overall inflation increased to 2.05% in August 2024 from 2.04 in July 2024, higher by 0.01% points as compared to previous month where the increased inflation brings the national average inflation from January to August 2024 to 3.35%.
According to the National Statistics Bureau (NSB), the increased inflation was primarily driven by increased food and non-alcoholic beverages, furnishings, household equipment and routine household maintenance, and clothing and footwear.
NSB stated that food inflation increased to 3.08% in August 2024, non-alcoholic beverages index recorded an increase of 3.47%, the housing and utilities index recorded an increase of 0.56%, amongst others.
For instance, 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.
Meanwhile, the year on year food inflation increased to 3.08% in August 2024. Within the food category, the food and non-alcoholic beverages index recorded an increase of 3.47%, while the Alcoholic beverages and betel nuts index saw a drop of -1.59%.
While, the year on year non-food inflation decelerated to 0.99% in August 2024 from 1.72% in July 2024.
The downward trend in the non-food category was driven by decrease in the indices of transport and communication to -1.11% and -1.60%, respectively. However, the housing and utilities index recorded an increase of 0.56%.
Central Region CPI
In August 2024, the month-on-month inflation for the central region increased to 0.24% compared to the previous month. Both the food and non-food indices recorded an increase.
The food inflation increased to 0.54%, largely driven by a 0.59% increase in food and non-alcoholic beverages index, while, the alcoholic beverages and betel nuts index decreased to -1.35%.
Similarly, the non-food inflation increased to 0.05%, mainly driven by mainly driven by increase in housing and utilities index to 0.88%, while the transport and communication index decreased to – 0.69% and -0.28% respectively.
Western Region CPI
The month to month inflation for the August month in the western region saw an increase of 0.77%. According to the bureau , the upward trend in food inflation was mainly driven by a 0.94% increase in food and non-alcoholic beverages index, while the alcoholic beverages and betel nuts index dropped to -1.33%.
Similarly, the non-food inflation in western region recorded a marginal decline compared to July 2024, with the transport and communication indices dropping to -0.745 and -0.22%, respectively, while the housing and utilities index increased to 0.59%.
Thimphu CPI
The inflation for the capital city rose to 0.17% in August. This increase was driven by a 0.55% rise in the food index and a 0.02% increase in the non-food index.
Similarly, the food inflation for the capital city increased to 0.17%. Within the Food category, the index for food and non-alcoholic beverages rose to 0.55%, while the index of alcoholic beverages and betel nuts dropped to -2.83%.
Meanwhile, in the non-food category, the transport index decreased to -0.68% and the communication index dropped to -0.22%, while the housing and utilities index saw a 0.60% increase.
Eastern Region CPI
In the eastern region, the inflation rate increased to 0.47%, mainly driven by an increase in the food index.
Food inflation in the eastern region increased to 0.90% in August 2024. The Food and non-alcoholic beverages index increased to 0.97% with no changes in the alcoholic beverages and betel nut index.
While the Non-food inflation decreased to -0.02% and within the non-food category, the housing and utilities index rose to 0.75%, while the transport and communication index decreased to -0.85% and -0.10% respectively.
By Sherab Dorji, Thimphu