The latest macroeconomic report of Nepal Rastra Bank (NRB), the central bank, shows that prices of food and non-food items went up by 8.7 percent and 8.6 percent, respectively, in the tenth month ended mid-May. Prices of food and non-food items rose 7.1 percent and 10.1 percent, respectively, in the same period last year. [break]
The report shows that prices of meat and fish surged by 16.3 percent in the tenth month of this fiscal year, up from 10.2 percent reported in the same period last year.
Similarly, prices of spices soared by 12.9 percent in the review period, as against a decline of 12.2 percent in the same period last year, while prices of cereals, grains and their byproducts went up by 12.8 percent in the tenth month of this fiscal year, as against a drop of 1.9 percent recorded in the same period last year.
Prices of cereals and grains have been going up this year as shortage of fertilizers in major plantation seasons and delayed monsoon dragged down their production. Because of this, the Ministry of Agriculture Development (MoAD) last week projected 53 percent drop in food surplus this year.
Among others, prices of legume varieties and tobacco products also surged 12.4 percent and 11.4 percent, respectively, in the review period, as against increment of 1.3 percent and nine percent recorded in the same period last year.
Under the non-food and services group, education cost rose by 12.5 percent in the tenth month of this fiscal year, while prices of furniture and household equipment posted a hike of 11.7 percent. Similarly, prices of clothes and footwear also surged by 13.7 percent in the review period.
The NRB report shows inflation in Kathmandu Valley at 9.4 percent in the tenth month of the current fiscal year--the highest in the country--followed by 8.7 percent in the Tarai and 7.8 percent in the hilly region. Inflation in these areas stood at 7.7 percent, nine percent and 9.4 percent, respectively, in the same period last year.
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