KATHMANDU, April 10: Consumers can breathe a sigh of relief from the excessive price hike of daily essentials for the past few months due to the pacified inflation rate of both food and non-food items, shows the records with Nepal Rastra Bank (NRB).
The NRB’s Current Macroeconomic and Financial Situation Report of Nepal for the eight months of FY 2024/25 show that the year-on-year inflation moderated to 3.75 percent in mid-March. The inflation rate declined 1.07 percentage points as of mid-March. In the same period last year, the inflation rate was 4.82 percent. The price hike in the review month was even less compared to the inflation rate of 4.16 percent in the previous month this year.
The NRB report shows that the growth rate of average market price of food increased by 3.34 percent, down from 5.95 percent in the review month. Likewise, the non-food and service inflation also dropped nominally to 3.97 percent from 4.07 percent.
Consumer price inflation moderates to 4.16 percent
Under the food and beverage category, the year-on-year price index of ghee and oil sub-category increased 13.74 percent, pulses and legumes 7.80 percent and fruits 6.82 percent. On the other hand, prices of spices, vegetables and meat and fish declined by 5.17 percent, 1.24 percent and 0.74 percent, respectively.
Under the non-food and services category, the price index of miscellaneous goods and services sub-category increased 10.14 percent, clothes and footwear 7.01 percent, alcoholic drinks 6.07 percent, transportation 5.07 percent, and furnishing and household equipment 5.59 percent.
Consumer price inflation in Koshi Province was 5.68 percent, the largest of all followed by Sudurpaschim Province (4.41 percent), Karnali Province (3.80 percent), Lumbini Province (3.77 percent), Madhesh Province (3.52 percent), Bagmati Province (2.98 percent) and Gandaki Province (2.77 percent).
Based on region, the mountain region witnessed the highest inflation of 4.77 percent. In the Terai, the inflation stood at 3.77 percent, while in the hills and the Kathmandu Valley, the inflation rates were 3.72 percent and 3.25 percent respectively.
According to the records with the NRB, the consumer price inflation has been moderated in the past few months mainly due to slow rise in prices of food including vegetables. The government has set a target to maintain consumer price inflation within 5.5 percent for FY 2024/25.
