The overall inflation rate in Bhutan stood at 1.34% in October 2024, slightly lower than the 1.35% recorded in September 2024. This brought the national average inflation rate from January to September 2024 to 3.01%, according to the National Statistics Bureau (NSB). The inflation trend was primarily driven by a rise in the Food and Non-alcoholic Beverages category.
Year-on-year food inflation rose to 4.62% in October 2024. Within this category, the Food and Non-alcoholic Beverages index recorded a significant increase of 5.14%, while the Alcoholic Beverages and Betel Nuts index declined by 1.70%. On a month-on-month basis, food inflation increased by 0.85% in October, propelled by a 0.89% rise in the Food and Non-alcoholic Beverages index and a 0.36% increase in the Alcoholic Beverages and Betel Nuts index.
Conversely, year-on-year non-food inflation fell to -1.72% in October 2024. This decline was largely attributed to reductions in the Housing and Utilities index (-0.99%), the Health index (-0.50%), and the Transport index (-9.11%). Month-on-month non-food inflation also decreased, reflecting the same downward trend in these key subcategories.
Capital City CPI
Inflation in the capital city rose to 1.16% in October 2024, primarily driven by a 1.89% increase in the Food index and a 0.49% rise in the Non-food index. Within the Food category, the Food and Non-alcoholic Beverages index climbed by 2.02%, while the Alcoholic Beverages and Betel Nuts index remained stable.
In the Non-food category, the Clothing and Footwear index rose significantly by 2.74%, and the Furnishings, Household Equipment, and Routine Household Maintenance index surged by 3.08%. The Restaurants and Hotels index also increased by 1.61%. However, the Transport index declined by 0.65%.
Central CPI
In October 2024, the month-on-month inflation rate for the Central region increased to 0.38%. Food inflation rose to 0.75%, primarily due to a 0.81% rise in the Food and Non-alcoholic Beverages index and a 0.09% increase in the Alcoholic Beverages and Betel Nuts index.
Non-food inflation in the Central region edged up by 0.02%, driven by a 0.57% rise in the Clothing and Footwear index and a 1.15% increase in the Health index. In contrast, the Transport index fell by 0.31%, and the Communication index dropped by 0.22%.
Eastern CPI
In the Eastern region, the month-on-month headline inflation rate increased to 0.71% in October 2024, driven by rises in both Food and Non-food indices.
Food inflation reached 1.13%, with the Food and Non-alcoholic Beverages index increasing by 1.16% and the Alcoholic Beverages and Betel Nuts index rising by 0.75%.
Non-food inflation rose to 0.22%, largely driven by a 2.22% increase in the Restaurants and Hotels index and a 1.23% rise in the Miscellaneous Goods and Services index. However, the Transport index declined by 0.65%.
Western CPI
Similarly, the Western region’s month-on-month headline inflation rate increased to 0.47% in October 2024, driven by growth in both Food and Non-food indices.
Food inflation rose by 0.72%, with the Food and Non-alcoholic Beverages index increasing by 0.74% and the Alcoholic Beverages and Betel Nuts index rising by 0.41%.
Non-food inflation in the Western region increased by 0.41%, with significant contributions from a 1.17% rise in the Clothing and Footwear index and a 1.47% increase in the Furnishings, Household Equipment, and Routine Household Maintenance index. Meanwhile, the Transport index declined by 0.55%.
Consumer Price Index (CPI) Overview
The CPI includes goods and services typically purchased by households. A representative sample of these goods and services is selected based on household expenditure data. The NSB collects prices for these sampled items from urban areas across all 20 Dzongkhags at varying frequencies—monthly, quarterly, or annually—depending on the frequency of price changes.
To provide a comprehensive understanding of price dynamics across the country, the NSB publishes five distinct CPIs monthly: the national CPI, Eastern CPI, Western CPI, Capital CPI, and Central CPI. These indices enable a nuanced analysis of regional inflationary trends, reflecting the diverse economic activities and consumption patterns in Bhutan.
Sherab Dorji From Thimphu
