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CPI grows by more than 2%

The Consumer Price Index (CPI) in February 2018 (from February 2017 to February 2018) increased by 2.61%, according to the CPI Bulletin for February 2018 released by National Statistics Bureau (NSB) recently.

This was 0.37 percentage point lower than the previous month which was 2.98%.

The increase was mainly associated with the increase in food prices by 5.94% while non-food prices increased by less than one percent (0.46%).

The prices of local goods and services increased by 1.9% with corresponding increase in food prices by 5.03% and non-food prices by 0.11%.

Prices of imported goods and services increased by 3.27% due to increase in food prices by 6.67% while non-food prices increased only by 0.81%.

The CPI is a measure of changes in the average retail prices of a market basket of goods and services purchased by households for day-to-day living. It shows how much, on average, prices of goods and services have increased or decreased from a particular reference period, commonly known as the base period.

The CPI for February over the previous month of January increased by 0.23%. Food prices went up by 0.35% and non-food by 0.14%.

Prices of local goods and services increased by 0.21% with food prices recording an increase of 0.33% and non-food prices increased by 0.14%. Imported commodities went up by 0.24% over previous month with corresponding increase in food and non-food by 0.37% and 0.15% respectively.

The PPN, as measured by CPI was 75 Ngultrum as of February 2018. This means, Ngultrum 100 in February 2018 is worth only Ngultrum 75 at December 2012 prices. The PPN has decreased by 2.55% in the past 12 months (i.e. from February 2017 to February 2018) due to price increase in the economy.

The CPI for January over previous month of December increased by 0.18%. Food prices went up by 0.24% and non-food by 0.14%.

CPI for both local and imported commodities increased by 0.18% with food prices contributing to increase in local goods and services by 0.46%. Non-food prices contributed to the increase in imported goods with 0.27%.

The Bulletin is compiled using December 2012 as the price reference period and tracks the price movements of 151 items in 20 districts and 2 major urban areas. The rebased CPI uses the Geometric Modified Laspeyres formula, and has separate indices for domestic and imported goods and services.

Pema Seldon from Thimphu