CPI increased 2pc y-o-y in December 2020

The Consumer Price index (CPI) in December 2020 increased by two per cent year-on-year compared to December 2019. Prices of food and non-alcoholic beverages increased by 4.7 per cent, while non-food prices increased by 1.4 per cent.

The CPI increase was largely attributed to increases in the prices and costs of miscellaneous goods and services (10 per cent); food and non-alcoholic beverages (4.7 per cent); and transport (3.3 per cent). However, this was moderated by the decrease in prices and costs of clothing and footwear (5.1 per cent); furnishings, household equipment and routine household maintenance (1.7 per cent); and restaurants and hotels (0.7 per cent).

On a month-on-month basis, the CPI in December 2020 decreased by 0.1 per cent compared to November 2020. The Food and Non-Alcoholic Beverages Index increased by one per cent while the Non-Food Index decreased by 0.4 per cent.

For the whole of 2020, the CPI increased by 1.9 per cent compared to a decreased of 0.4 per cent 2019, where the Food and Non-Alcoholic Beverages Index increased by 2.5 per cent and the Non-Food Index increased by 1.8 per cent.

The increase in the Food and Non-Alcoholic Beverages Index was driven by the hike in food prices such as vegetables and meat for broilers, beef and buffalo meat. Among others, this is due to the increase in domestic demand from travel restrictions and limited import supply.

Meanwhile, the increase in the Non-Food Index is mainly due to the increase in the price of miscellaneous goods and services as well as transport. However, it was offset by a decrease in prices of housing, water, electricity, gas and other fuels (0.3 per cent).

The CPI is a measure of price changes of goods and services paid by the consumer in a specified period and compiled on a monthly basis. The list of goods and services in the CPI is based on the average expenditure per household from the Household Expenditure Survey (HES). The CPI full report for December 2020 and Annual 2020 is available at www.deps.gov.bn.