TIL BDR GHALLEY| Thimphu
Bhutan’s inflationary pressures remained elevated in November 2025, with national headline inflation rising to 3.55 percent, according to the Consumer Price Index (CPI) November 2025 released by the National Statistics Bureau.
The report indicate that price increases continue to be driven primarily by food items, while non-food inflation shows a more moderate but steady rise across regions.
The average inflation rate from January to November 2025, recorded at 3.53 percent, suggests that price pressures have remained persistent throughout the year rather than being a short-term fluctuation.
The data show that food inflation, at 4.67 percent, continues to outpace non-food inflation, which stood at 2.75 percent in November.
A closer examination of food prices reveals that food and non-alcoholic beverages, the largest component within the CPI basket, increased by 4.72 percent at the national level.
This category alone exerts significant influence on overall inflation due to its weight in household consumption. Alcoholic beverages and betel nuts also recorded a notable increase of 4.05 percent, contributing further to food inflation.
Month-on-month data reinforce this trend. National inflation increased by 0.25 percent between October and November, with food inflation rising by 0.42 percent during the same period.
The month-on-month increase was largely driven by a 0.45 percent rise in food and non-alcoholic beverages, indicating that food price pressures were not only sustained but also intensified toward the end of the year.
Non-food inflation, while lower than food inflation, showed consistent upward movement across several categories.
Clothing and footwear, which recorded a year-on-year increase of 5.01 percent, emerged as the highest among non-food items. This was followed by health at 3.95 percent, Restaurants and hotels at 3.81 percent, and transport at 2.64 percent.
These increases indicate that cost pressures are spread across essential services and consumer goods rather than being confined to a single sector.
The month-on-month increase in non-food inflation stood at 0.06 percent, driven mainly by a 0.29 percent rise in the transport index. Other non-food categories remained unchanged during the month, suggesting relative stability outside transport-related costs.
Regional data show clear variation in inflation levels, with the capital city recording the highest year-on-year inflation rate at 5.01 percent. This figure is significantly higher than the national average and reflects sharp increases in food prices within the capital.
Food inflation in the capital city rose to 8.44 percent, nearly double the national food inflation rate.
Within this category, food and non-alcoholic beverages increased by 8.91 percent, highlighting the extent of food price pressures faced by urban consumers.
In contrast, alcoholic beverages and betel nuts increased by 1.82 percent, indicating uneven price movements within food categories.
Non-food inflation in the capital city stood at 1.94 percent, lower than the national non-food average.
However, specific categories such as transport with 3.65 percent, health with 2.92 percent, and clothing and footwear with 2.44 percent still recorded notable increases.
The communication index declined by 0.74 percent, partially offsetting upward pressure from other non-food items.
On a month-on-month basis, inflation in the capital city increased by 0.19 percent, reflecting continued price momentum even after accounting for seasonal variations.
Outside the capital city, inflation patterns varied across regions. The central region recorded a year-on-year inflation rate of 4.48 percent, driven by food inflation of 6.39 percent and non-food inflation of 2.47 percent.
The region experienced a relatively high month-on-month inflation increase of 0.92 percent, largely due to a 1.78 percent rise in food prices, indicating short-term volatility in food costs.
The eastern region recorded a lower year-on-year inflation rate of 3.17 percent, with food inflation at 4.90 percent and non-food inflation at 2.96 percent. Month-on-month inflation increased marginally by 0.02 percent, suggesting relatively stable prices compared to other regions.
In the western region, inflation stood at 4.63 percent, supported by food inflation of 5.82 percent and non-food inflation of 3.36 percent.
Notably, the health index increased sharply by 7.69 percent, the highest category increase among all regions, contributing significantly to non-food inflation in the west.
The CPI data also reflect a continued decline in the purchasing power of the Ngultrum. As of November 2025, the purchasing power stood at Nu. 53.8 compared to December 2012 prices.
This means that Nu. 100 in November 2025 could purchase goods and services equivalent to Nu. 53.8 in December 2012.
The purchasing power declined by 3.43 percent between November 2024 and November 2025, mirroring the sustained inflation recorded over the year.
Overall, the November CPI report indicate that inflation in Bhutan remains primarily food-driven, with urban areas—particularly the Capital City—experiencing sharper price increases.
While non-food inflation remains comparatively moderate, consistent increases across clothing, health, transport, and services suggest broad-based cost pressures.
Regional variations point to differing inflation dynamics, but the nationwide decline in purchasing power underscores the cumulative impact of sustained inflation through 2025.
