Inflation records suggest that the prices of food items have consistently jumped at double-digit growth rate over the last three years, causing a huge financial burden and hole in the pockets of general consumers. [break]
The price of non-food items, on the other hand, had grown at single-digit, much lower than essential food commodities during the same period.
When market forced consumers brave 13 percent rise in food prices in 2007/08, prices of non-food items had risen by only 9 percent. A year later, food prices jumped even at a higher rate of 19 percent, but officials suggested consumers to take respite because non-food prices grew at a lower rate of 5.1 percent.
Year-on-year data further shows food inflation remained high at 11.3 percent in mid-June 2010, whereas non-food inflation stood at 7.3 percent during the same period.
Statistics of Nepal Rastra Bank (NRB) further suggests that the prices of food over the last few years have grown fairly at higher rate than the non-food prices. The situation is completely opposite of what it used to be till the last decade.
The government officials attributed such a consistent rise in cost of essential commodities to high food price era that ruled the globe over the last couple of years. But the picture also highlights how poorly Nepal has performed in the agricultural sector, particularly on major food crops, oil and oil related produces and fruits.
Experts have long blamed faulty policy, something which has left farmers on their own to compete and generate profits competing against highly subsidized Indian produces, for such a situation.
The central bank has also tagged strike and banda and transporters´ syndicate that operate with unfair collective price fixing as another crucial factor behind high inflation, which stood at around 10 percent in 2009/10. Clearly, the government could have addressed these constraints factors with strong will and commitment.
But as the market regulators remain irresponsive to consumers´ plight, people were forced to brave 14.1 percent rise in prices of rice and rice products in mid-June 2010. They were burdened with even higher (21.7 percent) rise in prices of wheat and wheat flour.
Because wheat and wheat flour is used for manufacturing wide range of packed food items, the rise had multiplier effects in the market.
Among the food items, the only item in which consumers could heave a sigh of relief this year was vegetables products. NRB reports says, the prices of food items in mid-June 2010 dropped by around 13 percent, compared to 70 percent rise in prices of the same period last year.
Even among non-food items, prices of cloths jumped 11.1 percent during the period. Records further show that the prices of petroleum products jumped 12.7 percent, triggering inflationary pressure during the period.
Related story
Do you remember your first crush?
