Inflation in November last year surged past 3.5 per cent, nearly double the rate recorded in the same month in 2024. This is according to the Consumer Price Index report released on Wednesday. The report shows increases in both food and non-food prices.
The Consumer Price Index, or CPI, tracks changes in the prices of goods and services over time, based on household spending patterns.
In November 2024, inflation stood at 1.8 per cent. It rose steadily throughout last year, peaking in October, before easing slightly in November. The average inflation rate from January to November last year stood at 3.53 per cent.
Food prices emerged as the main driver of inflation in November last year, with food inflation rising to 4.67 per cent. Within the food category, prices of food and non-alcoholic beverages increased by 4.72 per cent on a year-on-year basis. Prices of alcoholic beverages and betel nuts also rose by 4.05 per cent.
In the non-food category, inflation stood at 2.75 per cent.
Among non-food items, clothing and footwear recorded the highest increase at 5.01 per cent. This was followed by health services at 3.95 per cent, and restaurants and hotels at 3.81 per cent.
Transport prices rose by 2.64 per cent, further contributing to inflationary pressure. However, communication prices declined marginally during the same period.
The report also shows a decline in the purchasing power of ngultrum. As measured by the CPI, the purchasing power stood at Nu 53.8 in November 2025.
This means that Nu 100 in November last year was worth only Nu 53.8 when compared to prices in December 2012.