The Consumer Prince Index (CPI) in January 2021 increased by 1.9 per cent year-on-year compared to January 2020. Prices of food and non-alcoholic beverages increased by 4.1 per cent, while non-food prices increased by 1.3 per cent.
The CPI increase was largely attributed to increases in the prices and costs of transport (6.2 per cent); food and non-alcoholic beverages (4.1 per cent); and education (1.9 per cent). However, this was moderated by decreases in prices and costs of clothing and footwear (4.3 per cent); furnishings, household equipment and routine household maintenance (1.1 per cent); and restaurants and hotels (0.5 per cent). The increase in prices of transport was largely attributed to rise in prices of motor vehicles.
Rising prices of food and non-alcoholic beverages was driven by the hike in food prices such as vegetables, chicken, as well as beef and buffalo meat. The increase in the price of vegetables was due to uncertain weather conditions. Meanwhile, the increase in the price of chicken, beef and buffalo meat was due to increased domestic demand following travel restrictions and limited import supply. Furthermore, the rising cost of education is due to the increase in tuition fees of selected private educational institutions.
On a month-on-month basis, the CPI in January 2021 increased by 0.5 per cent compared to December 2020. The food and non-alcoholic beverages index increased by 0.1 per cent, while the non-food index increased by 0.6 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 January 2021 is available from Department of Economic Planning and Statistics (DEPS) website www.deps.gov.bn.