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PPI increases by 5%

The year-on-year inflation rate as measured by Producer Price Index (PPI) for April, May and June this year as compared to the same months of the previous year is recorded at 4.79%, 5.15% and 5.29% respectively

The year-on-year inflation rate has increased on an average of 5.08% from the second quarter month of the previous year 2016, according to a National Statistics Bureau report released recently. The year-on-year inflation rate as measured by Producer Price Index (PPI) for April, May and June this year as compared to the same months of the previous year is recorded at 4.79%, 5.15% and 5.29% respectively.

The logging sector recorded a consistent increase in all first quarter months by 2.48% while mining and quarrying sectors recorded an increase by 2.48%, 2.54% and 1.65% in April, May and June respectively. The manufacturing sector recorded an increase by 5.52%, 6.30% and 6.73% in April, May and June respectively.

The electricity and gas sector recorded an increase by 4.29% on an average. Transport sector recorded an increased by 8.35%, 8.11% and 7.95% in April, May and June respectively. Water supply and information and communication sector had no change price in all three months.

The report also states that the month-to-month inflation recorded an increase of 0.39% on an average. The mining and quarrying sector recorded a decrease by 0.52% on an average. The manufacturing sector increased by 3.31% in April, while there is decrease in May and June by 0.32% and 0.06% respectively. The transport sector saw a decrease by 0.21% on an average. The decrease is attributed to decrease in exchange rate as compared to previous months.

The prices remained same for logging, electricity, gas, steam supply, water supply and information and communication sector for all the three months.

The increase in index by 0.39% was attributed to corresponding increase in the manufacturing sector by 3.13% in the month of April.

Similarly the year-on-year inflation rate also increased on an average of 3.42% from the first quarter of the previous year 2016.The year-on-year inflation rate as measured by PPI for January, February and March as compared to the same months of the previous year is recorded at 2.38%, 3.78% and 4.10% respectively. The report also states that month-to-month inflation recorded an increase of 1.10% on an average. The increase in index by 1.10% was due to corresponding increase in the manufacturing sector, mining and quarrying and logging sector.

Dechen Dolkar from Thimphu