KATHMANDU, Feb 3: The consumer price inflation pacified in mid-January, with Nepal Rastra Bank (NRB) fixing the inflation rate at 5.41 percent for the review month, down from 6.05 percent in the previous month.
The Current Macroeconomic and Financial Situation Report of Nepal for the first six months of the FY 2024/25 unveiled by Nepal Rastra Bank (NRB) on Sunday shows that the growth rate of average market price declined by 0.64 percentage points in one month during mid-December and mid-January. On a year-on-year basis, the inflation rose 0.15 percentage points in the review month from 5.26 percent in the corresponding period of last year.
According to the NRB, the price inflation moderated due to a slowdown in price hike of food and beverages. In the review month, the average price of food and beverage increased at 7.67 percent compared to 9.99 percent in the previous month. The price index of vegetables in the group also slowed to 28.52 percent from 43.05 percent
As of mid-January prices of pulses and legumes increased 9.48 percent. Likewise, prices of cereal grains and related products surged by 7.23 percent. In contrast, the non-food and service inflation stood at 9.35 percent.
Consumer price index moderates to 3.85 percent in mid-September
During the review month, the price index in rural areas increased by 5.68 percent, while it rose by 5.31 percent in urban areas.
Province-wise, consumer price inflation in Koshi Province was 6.73 percent, the largest of all followed by Madhesh Province (5.96 percent), Sudurpaschim Province (5.67 percent), Bagmati Province (5.14 percent), Lumbini Province (4.83 percent), Karnali Province (4.60 percent) and Gandaki Province (4.37 percent).
Region-wise, the Terai areas witnessed the highest inflation of 5.60 percent. In the hilly region, inflation stood at 5.41 percent. Inflation in the mountain region and the Kathmandu Valley stood at 5.72 percent and 5.03 percent, respectively.
The government has set a target to maintain consumer price inflation within 5.5 percent for FY 2024/25. The monetary policy for the current fiscal year has talked about maintaining price stability as one of its main goals.
Remittance growth rate slows, Rs 763 billion inflow in six months
The growth rate of remittances in Nepal has slowed to 4.1 percent in the first half of the current fiscal year.
According to Nepal Rastra Bank (NRB), the country received Rs 763.08 billion in remittances in the review period. The growth rate of remittances in the country stood at 19.5 percent in the same period last year.
During mid-December and mid-January alone, the inflow was recorded at Rs 123 billion. According to the NRB, the remittance growth in the previous month was 4.4 percent. Despite an increase in the number of outbound workers, the earnings from remittance have been declining in recent months.
In the first half of the current FY, a total of 230,390 people obtained work permits for foreign employment, while 162,628 received renewal of work permits. In the review period last year, the figures stood at 106,000 and 133,000, respectively.
