Inflating prices

The effects of inflation on the prices of essentials …

Items

Rates

May June July
Stone Free Rice (ST Rice)

980

1050

1100

Nestle Every Day Milk Powder

190

215

245

Red Label Tea Leave  (500 gms)

145

145

145

Natural  Gold Refined Oil (1Kg)

55

60

65

Maida (1Kg)

20

22

22

Salt (1Kg)

10

10

10

Sugar (1 Kg)

40

40

45

Amul Butter

100

110

120

Amul Cheese

190

205

225

 

Facebook Comments:

Comments

  1. Dear OL,

    You havent mentioned the vegetables, atleast your above essentials last for a while, but vegetables, weekly purchases. Have you heard of how much a Kg of Tomatoes cost at the moment..Nu. 60-70. There is nothing really that you can purchase for Nu. 10 these days at the vegetable market.Patotoes once used to be Nu. 7-8 per Kg, these days it is 20 per kg.Nu. 500 cannot fill a basket these days at the vege market…

    I know it cna be argued that these are all locals and atleast money is inside and not going out but yet…

  2. SO WHAT?

  3. A kg of sag is Nu.20 in Phuentsholing and potatoes are priced at Nu.25-30. Tomatoes are like gold. Something must be done before there is a march. Hopefully, we don’t have to go to that extent. Please check out my blog entry on living in an inflated country: http://nawangpenstar.blogspot.com/2010/07/living-in-inflated-time.html

  4. SO WHAT??…..don’t you see that the cost of GNH is SKY ROCKETTING everyday??

  5. Should we continue bearing the brunt of price rise and say “we don’t have control”. Or is there some ways to stabilize price of these essential commodities?..can government do anything? or government is also as helpless as we are!…maybe some economist can highlight on this issue…

  6. Thinlay says:

    My answer, as a non-economist, is that demand is outstripping supply and source of food items, land, water, raw materials, are becoming scarce. This i think is the reason for soaring food prices.

    The only thing, government can do, in my opinion, is to build food stock when prices are low, and release the stock when market food price increases to stabilize the price in the market.

    Cheers

  7. TrueDukpa says:

    So, is the government doing anything about it? No, I don’t think so. Out of many reason, least they care is the people, because for them it is the ‘self’ that fronts the people’s concerns. Elsewhere the predominant factor of the government that keeps them going strong is because they have learned to care and uphold people or the public above anything. Quite opposite is how our government function, it is all about ‘self’.

    What is the government doing about it? What is the government doing about the following?:

    1. Unemployment issues
    2. Access to Basic/Primary Health Care
    3. Education and its quality
    4. Poverty
    5. GNH
    6. Corruption and etc etc etc

    Even though the government is aware of the current situation of the country, there has little or none efforts in improving various situations in the country. Either they are blinded entirely by ‘self’ or they choose to ignore it and let the people confront the consequences. At the end of the day, we all know, the situation is turning into no good or even worse…

  8. Before we go any further …

    It’s good to remember that there are a number of causes for inflation.

    Demand relative to supply of goods and services Thinlay mentioned is indeed one of the important causes. The Kuensel article, which OL linked, details this and mentions some others too.

    Among others, critical ones are the amount of money in circulation in the economy, and how fast it goes around chasing after goods and services (economists call it the “velocity” of money).

    Most national economies have ways of controlling the amount and the velocity of money – they’re called monetary policies. In sum, Central Banks can do various things to influence the price of money, i.e., interest rates.

    I said “most national economies.” Drukyul is exceptional in the world, of course, and in this too!

    Basically, we do not have the independent monetary policies.

    Why? Because we have chosen to tie our money to Indian rupees, one to one.

    So, when Indian economy inflates, so do we.

    Is India experiencing rising inflation nowadays? Yes. Reportedly, it’s hitting double-digit rates of late. Obviously, the Reserve Bank of India is concerned, and have been raising its benchmark interest rates for some time now.

    Don’t rush to de-link our money with India’s, though! As a small economy, we do enjoy a lot of benefits associated with the tied currency.

  9. Thinlay says:

    I agree. Hot debate is going on in India about soaring food prices. As stated, Bhutan alone may not be able to contain soaring food prices. Let us keep fingers cross and hope the food prices stabilizes or come down in India. I also agree that Bhutan benefits from tying value of NU with Indian RS. For time being we should keep it that way.

    Cheers

  10. Like it or not but this is the fact. We are not only HEAVILY dependent on almost everything that we use in our daily lives from the basic table salts to the hitech computers on external factors, we are also HELPLESSLY dependent on them. We can not do anything at all about these shooting prices. Can we? And sandwiched between two economic super powers of the world who is interested in nothing but GDP and expansion of their economy, our GNH will remain nothing but a utopian doctrine that will make a lot of sense but does not work quite very well in reality. Honestly, although I agree that the idea and the principles of GNH are in essence very noble and good,pursuit of GNH in a world where GDP has strongly established itself as a life blood will be suicidal and catastrophically disastrous!

  11. The “stone free rice”really bother me. Aren’t rice supposed to be stone free?

  12. I feel sorry for those ppl who have lots of mouth to be fed.
    i think the government should do something.

  13. Why doesnt the government do something about the raising cost. what about us…. the ‘Amm Aadmi’.

    the only solution is to reduce the tax

  14. ST Rice (Stone Free Rice)…mmm…would it have meant SF Rice? Like truth says, it’s bothering…Maybe our honourable OL meant Super Fine Rice?

  15. Sorry the link for the article on food sufficiency is

  16. The other concern is the food self-sufficiency. How is our position on the food self-sufficiency? Where are we in terms of the target? People cannot be happy if there is not sufficient food to feed their stomachs. Positive views on food sufficiency can be found at

    http://www.juliansimon.com/writings/Ultimate_Resource/

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