1.1 Headline Inflation (Year-on-Year)
Headline inflation in September 2026 accelerated to 5.58 percent year-on-year, primarily due to faster non-food price increases, partly offset by a slowdown in food prices. The average headline inflation for the year (January to September 2026) stood at 6.29 percent.
Food Inflation (Y-o-Y)
Food inflation recorded at 4.95 percent in September 2026. Within the Food category, the Food & Non-Alcoholic Beverages index rose 3.85 percent, while the Alcoholic Beverages & Betel Nuts index rose 19.49 percent.
Non-Food Inflation (Y-o-Y)
Non-food inflation reached 6.34 percent in September 2026. Key drivers within non-food items include the Transport index, which climbed by 12.43 percent, followed by Housing and Utilities at 10.87 percent.
1.2 Headline Inflation (Month-on-Month)
On a month-on-month basis, national inflation eased to 0.20 percent in September 2026, down from 0.28 percent in August 2026. Both the Food (0.07%) and Non-Food (0.33%) indices recorded increases.
Food Inflation (M-o-M)
Month-on-month Food inflation rose to 0.07 percent in September 2026. Within the Food category, the Food & Non-Alcoholic Beverages index rose 0.15 percent, while the Alcoholic Beverages & Betel Nuts index fell 0.82 percent.
Non-Food Inflation (M-o-M)
Month-on-month Non-Food inflation rose to 0.33 percent in September 2026. The increase was mainly driven by Transport (1.63%).
1.3 Purchasing Power of Ngultrum (PPN)
The purchasing power of the Ngultrum (PPN), as measured by the CPI, stood at Nu. 51.3 as of September 2026 compared to the base period of December 2012. This indicates that Nu. 100 in September 2026 is equivalent to only Nu. 51.3 at December 2012 price levels. The purchasing power of the currency has eroded by 5.29 percent over the past year.
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