𝐑𝐢𝐬𝐢𝐧𝐠 𝐏𝐫𝐢𝐜𝐞𝐬 𝐏𝐮𝐬𝐡 𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐓𝐨 𝟑.𝟓𝟓 𝐏𝐞𝐫𝐜𝐞𝐧𝐭 𝐈𝐧 𝐍𝐨𝐯𝐞𝐦𝐛𝐞𝐫

…𝒉𝒊𝒈𝒉𝒆𝒓 𝒇𝒐𝒐𝒅 𝒂𝒏𝒅 𝒕𝒓𝒂𝒏𝒔𝒑𝒐𝒓𝒕 𝒄𝒐𝒔𝒕𝒔 𝒂𝒅𝒅 𝒑𝒓𝒆𝒔𝒔𝒖𝒓𝒆 𝒐𝒏 𝒉𝒐𝒖𝒔𝒆𝒉𝒐𝒍𝒅 𝒃𝒖𝒅𝒈𝒆𝒕𝒔

By Kinzang Lhamo

Inflation in the nation rose to 3.55 percent in November 2025, driven by continued increases in both food and non-food prices, the National Statistics Bureau (NSB) reported. The average inflation from January through November stood at 3.53 percent, signaling persistent price pressures across the country.

“Prices rose across the board, with both food and non-food items pushing November’s inflation higher,” the NSB report states.

Food prices were the main contributor, with food inflation climbing to 4.67 percent. Within this category, food and non-alcoholic beverages rose 4.72 percent, while alcoholic beverages and betel nuts increased 4.05 percent. Non-food prices also advanced, with overall non-food inflation reaching 2.75 percent. Notable increases were recorded in clothing and footwear (5.01 percent), restaurants and hotels (3.81 percent), and health services (3.95 percent), while the transport index rose 2.64 percent.

In simple terms, both essentials like food and discretionary items such as clothing and dining out became more expensive, affecting households’ budgets.

On a month-to-month basis, national inflation edged up 0.25 percent in November, driven by incremental rises in both food and non-food categories. Food prices increased by 0.25 percent, with food and non-alcoholic beverages rising 0.45 percent and alcoholic beverages and betel nuts contributing 0.06 percent. Non-food prices increased marginally by 0.06 percent, with transport accounting for 0.29 percent of the monthly rise.

This shows that even over a single month, prices continued to creep up, making everyday expenses slightly higher for consumers.

Regional data showed uneven inflation across the nation. Thimphu recorded the highest year-on-year inflation at 5.01 percent, fueled by an 8.44 percent rise in food prices. In the capital, food and non-alcoholic beverages increased 8.91 percent, while alcoholic beverages and betel nuts rose 1.82 percent. Non-food items in Thimphu rose 1.94 percent, with transport (3.65 percent), health (2.92 percent), and clothing and footwear (2.44 percent) contributing to the increase. Month-on-month, Thimphu experienced a 0.19 percent rise, primarily from food and transport costs.

The Central region recorded year-on-year inflation of 4.48 percent, with food prices increasing 6.39 percent and non-food items rising 2.68 percent. Monthly inflation in the region climbed 0.92 percent, largely due to food and non-alcoholic beverages, which rose 1.93 percent, while alcoholic beverages and betel nuts contributed 0.17 percent.
Inflation in the Western region reached 4.63 percent year-on-year, reflecting increases in essential goods, while the Eastern region recorded 3.17 percent, indicating slightly milder price pressures. Across regions, both food and non-food categories contributed to rising consumer prices, consistent with trends observed throughout the year.

Overall, the data shows that urban areas, particularly Thimphu, face higher inflation than rural regions, where households may offset some impact through local food production.

The persistent rise in food prices, particularly staples, continues to impact household budgets. Food remains the most volatile component of the Consumer Price Index, influenced by domestic production, supply chain challenges, and seasonal variations. Non-food items such as clothing, health services, and restaurants also contributed to inflation, indicating that price pressures extend beyond basic necessities. Transport costs, which rose moderately in November, add another layer of impact, particularly in urban areas where mobility and commuting costs weigh heavily on households.

“Overall inflation in November rose due to higher prices across both essential and non-essential items,” the report said, highlighting that both essential and discretionary spending areas are affected. Analysts suggest that persistent inflation above 3.5 percent may influence monetary and fiscal policy decisions, including adjustments in interest rates or targeted subsidies for vulnerable households. Price pressures in the capital are particularly significant, given Thimphu’s role as the commercial and administrative hub, where inflation can directly affect business operations and consumer purchasing power.

Residents expressed concern over rising prices. Sonam Phuntsho from Thimphu said, “Already there has been a surge in the price of goods and transport, and it is very difficult to survive on my salary. On top of it, prices will eventually rise again due to the Goods and Services Tax. I feel it is becoming more expensive every month.”

Norbu from Pemagatshel noted, “Living in the village is better than in urban areas because we cultivate our own crops and can consume and sell them at the same time. But hearing about the increase in prices is very disheartening.”
Another Thimphu resident, Sonam Tshomo, added that living in the capital is already expensive with rents, transport, and food, and many common people like her find that salaries do not even cover weekly expenses.

Overall, the November Consumer Price Index indicates a continuation of moderate inflation trends, with year-on-year rates surpassing 3.5 percent and month-on-month changes reflecting ongoing upward movement in both food and non-food categories. Households across the country are likely feeling the impact, particularly from essential goods and services, while policymakers and market observers continue monitoring these trends to ensure stability and address areas of higher price volatility.