The annual inflation rate for August 2015 rises by 3.10 percent
he annual inflation rate from August 2014 to August 2015 was raised by 3.10 percent which was 0.34 percentage point lower than the previous month which was 3.44 percent.
According to the monthly consumer price index (CPI) bulletin August 2015, complied by National Statistics Bureau recorded that prices for food has risen by 2.29 percent and non-food prices by 3.64percent.
The prices of domestic goods and services have increased by 3.74 percent due to increase in food prices by 2.62 percent and non-food prices by 4.38 percent.
Whereas the prices of imported goods increased by 2.55 percent because of the increase in food prices by 2.12 percent and non-food prices by 2.90 percent.
While, 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 also 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 report states that the new re-based CPI uses the Classification of Individual Consumption According to Purpose (COICOP): the 12 major groups which includes Food and Non-Alcoholics Beverages; Alcoholic Beverages & Narcotics; Clothing and Footwear; Housing, Water, Electricity, Gas and Other Fuels; Furnishing, Household Equipment and Routine Household Maintenance; Health; Transport; Communication; Recreation and Culture; Education; Restaurant and Hotels and Miscellaneous Goods and Services.
Of the twelve major groups, the highest percentage change in inflation rate from August 2014 till August this year was in restaurant and hotels with 7.60 percent inflation rates and followed by the education sectors with 6.71 percent and the communication was the lowest changes with 0.16 percent of inflation rate.
Whereas for food groups items, the highest percentage change in the inflation rates from August 2014 till August this year was with milk, cheese and eggs with 4.58 percent and lowest with fruits with negative 5.10 percent.
While for the non food products, the highest percentage change in the inflation rates over the year that is from August 2014 till August this year was for purchasing of the vehicle with 9.41 percent followed by the catering services with 8.65 percent and the lowest was with fuels and lubricant with negative 7.23 percent.
According to the monthly report, the month-to-month inflation for August over previous month of July was 0.35 percent. The prices of the foods and non-food have increased by 0.74 percent and 0.09 percent respectively.
The prices for domestic goods and services have increased by 0.57 percent on an average over the previous month with corresponding increase in food and non-food prices by 0.84 percent and 0.42 percent
The prices for imported goods have also increased by 0.14percent due to increase in food prices by 0.65 percent and non-food prices by negative 0.24 percent.
The purchasing power of ngultrum (PPN), as measured by CPI was 82 Ngultrum as of August this year. This means, Ngultrum 100 in August this year was worth only Ngultrum 82 at December 2012 prices. The PPN has decreased by 3.00 percent in the past 12 months (i.e. from August 2014 to August 2015) due to price rise in the economy.
Meanwhile, the prices are collected online from the sampled outlets by price collectors using mobile application devices once every month and the Bulletin is compiled using December 2012 as the price reference period and tracks the price movements of 436 commodities and services in 20 districts and 2 major urban areas.