The Bhutanese Leading the way.
Bhutan’s Export Price Index recorded a year-on-year inflation of 5.48 percent in the second quarter of 2026, covering April to June, compared with the same quarter in 2025. The Import Price Index also increased by 4.19 percent during the period. The Export Price Index recorded a quarter-on-quarter increase of 3.38 percent in the second quarter of 2026. Mineral products, cement and electricity were the main drivers, recording a quarter-on-quarter increase of 6.43 percent. Food and beverages declined by 2.06 percent, while wood, pulp and paper declined by 7.73 percent.
On a year-on-year basis, mineral products, cement and electricity recorded the highest increase among the export categories at 11.65 percent, followed by wood, pulp and paper at 3.91 percent and food and beverages at 3.73 percent. Chemicals, plastics, textiles and apparel declined by 16.74 percent, while base metals and other manufactured goods declined by 1.06 percent. The Import Price Index increased by 3.51 percent quarter-on-quarter in the second quarter of 2026. Food and beverages increased by 4.03 percent, mineral products, cement and electricity by 2.82 percent, transport equipment by 2.85 percent, metals and metal articles by 5.81 percent, and machinery, appliances and other manufactured goods by 2.24 percent.
Wood, pulp and paper recorded a year-on-year increase of 19.63 percent, followed by metals and metal articles at 21.87 percent, chemicals, plastics, textiles and apparel at 14.70 percent, and machinery, appliances and other manufactured goods at 1.16 percent. Food and beverages recorded a year-on-year decline of 17.05 percent. The Terms of Trade Index stood at 94.45 in the second quarter of 2026, down by 0.12 percentage points from 94.57 in the first quarter of 2026. However, compared with the first quarter, the terms of trade increased by 1.51 percent.
The Terms of Trade Index stood at 93.04 in June 2024, 93.54 in September 2024, 94.03 in December 2024, 93.01 in March 2025, 93.04 in June 2025, 94.02 in September 2025, 93.84 in December 2025, 94.57 in March 2026 and 94.45 in June 2026. The index base period is the fourth quarter of 2014, with the index set at 100. The figures are compiled from the Export and Import Price Index Report for the second quarter of 2026.
