CPI increase of 3.83% in June, 2023
As the summer sun bathed the vegetable garden in a golden glow, farmer Aum Karma 35- years-old stood amidst the lush green fields near her house, surrounded by rows of vibrant crops swaying gently in the warm breeze. With calloused hands, she tenderly caressed the rich soil, feeling the earth’s vitality beneath her fingertips. The rhythmic chirping of birds provided a soothing backdrop to her contemplations as she pondered the impact of inflation on her cherished agricultural pursuits.
The recent Consumer Price Index (CPI) data, released in June 2023, weighed heavily on Aum Karma’s mind, akin to the burden of a heavily laden fruit tree. The year-on-year increase of 3.83% in inflation signified the mounting economic challenges faced by farmers like her across Bhutan.
As she meticulously dug each furrow, Aum Karma reflected on the significant price hikes in both food and non-food items, standing at 4.72% and 3.08%, respectively. Her intimate connection with the land allowed her to foresee the far-reaching consequences of these inflationary trends on her livelihood and the entire agricultural sector.
“Every seed I sow, every plant I nurture, the costs keep rising,” she murmured to himself, deep in thought. The recent surge in food prices, recording a significant increase of 4.85%, posed a pressing challenge for Aum Karma and her fellow farmers. She knew that the essentials needed for farming, from seeds to fertilizers and tools, had also become costlier due to the overall inflationary pressures that rippled through the economy.
Amidst the verdant greenery, Aum Karma’s thoughts turned to housing and utilities – the cornerstones of a farmer’s life. With a furrowed brow, she contemplated the notable increase of 10.50% in these essential necessities, raising concerns about the overall cost of living, especially for rural communities like her own.
Despite these challenges, Aum Karma remained resilient, believing in the potential for sustainable solutions to weather the storm of inflation. Analyzing the month-on-month CPI data, she found a slight decrease of 0.01% in May 2023 compared to the previous month.
However, this small reprieve was overshadowed by the continuing rise in food prices by 0.59%, reaffirming the need for pragmatic approaches to ease the burden on farmers.
A glimmer of hope emerged as Aum Karma drew insights from the data of 2021 to 2022. The recent decrease in the inflation rate by 1.71 percentage points compared to the 7.35% increase in 2021 offered a ray of optimism. She realized that this decrease was attributed to the lower rate of increase in food items, which saw a rise of just 3.95% in 2022 compared to the 9.38% increase in 2021.
Understanding the composition of the overall inflation rate, Aum Karma was aware that food prices accounted for approximately 34% in 2022, while non-food items contributed to 66% of the total increase. This shifting dynamic reminded him of the importance of striking a delicate balance between various aspects of the economy.
As Aum Karma interacted with fellow farmers and vendors at the bustling local markets, she shared insights into the contribution of food and alcoholic beverages, each playing a significant role in contributing to more than 33% of the total increase in 2022. Transport, too, played a crucial role, with approximately 33% contribution, while clothing and footwear accounted for around 13% of the overall increase.
Aum Karma’s experiences in the vegetable garden and interactions with fellow farmers painted a vivid picture of the challenges they faced amidst the shifting economic landscape. The recent highest increase in transport by 12.59% had implications on transportation costs, potentially affecting the accessibility of markets and prices for agricultural products.
As the sun began to set over the verdant farmlands, Aum Karma headed home with a sense of hope and determination. Her worn hands still held the promise of tomorrow’s harvest, and her heart remained steadfast in the face of challenges.
With the support of the government and the collective efforts of the people, Bhutan’s farmers would continue to sow the seeds of prosperity, ensuring a brighter and more sustainable future for generations to come.
By Kinley Yonten
