The retail businesses in Bhutan which have become modern can be seen by the fact that there are many stores selling food items, non-food items, alcoholic items and clothing which is increasing day by day, and therefore, a high demand for the products is created. If such an increase in demand cannot be met by an increase in production, prices begin to rise, which is generally referred to as inflation. High and volatile inflation can be detrimental to both individual businesses and consumers, as well as the economy as a whole. Inflation in Bhutan has been rising steadily for many years. Previous studies describe imported inflation, rising fuel prices, increasing demand and increasing income level of the Bhutanese population, among others, as the main determinants of inflation. The first factor, imported inflation, although not relevant for many other countries, is one of the main factors affecting inflation in Bhutan. This is because Bhutan shares a common currency zone with India, with the Bhutanese currency (Ngultrum) pegged to the Indian rupee. The biggest problem that has upset every retailer of not only Chukha dzongkhag but also retailers of an entire country is inflation. Inflation provides an easy excuse for even the smallest retailers to attempt to raise prices and harms consumers' purchasing power. Here, rising prices mean we have to pay more for the same goods and services. The main product groups that our group has taken are food and beverages and non-food items and services. The target markets of our group are Tshimasham, Gedu and Phuentsholing where there are more retailers. Inflation has another harmful side effect, once people start expecting inflation they will now spend rather than...... middle of paper ......ea encouraged the voluntary participation of the public and, therefore, no coercion was practiced.c. The confidentiality of their information was ensured and this was made clear to them before their participation in the study.d. The participants are also well informed about the nature and purpose of the research.1.6: Limitation of the study:-This study is, however, not without its problems. Our study is limited by the following issues. Time and cost constraint. The results of this research are based on a survey conducted only in Chukha Dzongkhag and may not be applicable to other Dzongkhags of Bhutan. Literature on the topic is very limited. Due to very limited time, we were only able to interview 50 retailers from the three sites. It may be very small, but they are representative of general business owners in the region and the country..