KATHMANDU, March 11: The consumer price inflation moderated to 4.16 percent in mid-February, with the prices of both food and non-food items pacified in the review month.
The Current Macroeconomic and Financial Situation Report of Nepal for the first seven months of the FY 2024/25 unveiled by Nepal Rastra Bank (NRB) on Monday, shows that the year-on-year inflation declined by 0.85 percentage point as of mid-February. In the same period last year, the inflation rate was 5.01 percent. The inflation rate in the seventh month this year was even less compared to 5.41 percent in the previous month.
The NRB report shows that the growth rate of average market price of food increased by 4.95 percent, down from 6.59 percent in the review month. Likewise, the non-food and service inflation also dropped nominally to 3.74 percent from 3.98 percent.
Under the food and beverage category, the year-on-year price index of ghee and oil sub-category increased 12.80 percent, pulses and legumes 9.06 percent, vegetable 7.56 percent and cereal grains and their products 6.36 percent, while those of spices decreased 2.98 percent. According to retailers, the food grain price has gone down by a nominal amount in recent days after India lifted restrictions on export of these food items.
Under the non-food and services category, price index of miscellaneous goods and services sub-category increased 10.91 percent, clothes and footwear 5.36 percent, alcoholic drinks 5.08 percent, transportation 5.01 percent, tobacco products 4.10 percent and furnishing and household equipment 4.07 percent.
Consumer price inflation in Koshi Province was 6.15 percent, the largest of all followed by Sudurpaschim Province (4.71 percent), Lumbini Province (4.16 percent), Karnali Province (4.05 percent), Madhesh Province (3.91 percent), Gandaki Province (3.40 percent) and Bagmati Province (3.35 percent).
Based on region, the mountain region witnessed the highest inflation of 5.21 percent. In the Terai, the inflation stood at 4.25 percent, while in the hills and the Kathmandu Valley, the inflation rates were 4.11 percent and 3.53 percent respectively.
According to the records with the NRB, the consumer price inflation has been moderated mainly in the past two months. The government has set a target to maintain consumer price inflation within 5.5 percent for FY 2024/25.