Nepal Rastra Bank, the central bank, has reported that inflation remained at 14.1 percent in mid-December 2008, as against 5.7 percent during the same period last year. [break]
It has attributed sharp rise in food and beverages prices (by 17.2 percent) the reason for the high inflation figure during the period.
The latest report of the central bank says that the prices of sugar and sugar related products increased by a whopping 35.9 percent over the last one year. Their prices, interestingly, had dropped by 17 percent during the same period last year.
Similarly, the prices of oil and ghee increased by 26.2 percent during the period. Still worse is that the cereals, the staple of the population, became expensive by 18 percent during the period.
“The prices of pulses as well as meat, fish and eggs rose up by 25.7 percent and 21.5 percent respectively in the review period,” states the report.
Consumers also witnessed higher price rise in transport and communications (21.7 percent), tobacco and related products (15.1 percent), and housing goods and services (12.3 percent) in mid-December 2008.
Region-wise, the price rose in the Kathmandu Valley at 16.2 percent, followed by the hills (13.6 percent) and the Tarai (13.1 percent). Last year, the rates were 4.9 percent, 5.3 percent and 6.2 percent respectively for the Valley, hills, and the Tarai.
Even though the government failed to hold inflation at about 7.5 percent, as per its commitment in the budget for the current fiscal year, the private sector successfully steered country’s exports to growth by 31 percent during the period. Exports had declined by 4.4 percent during the same period last year.
Of the major markets, exports to India mainly increased by 15.1 percent, reversing from a decline of 9 percent recorded in the same period last year. Exports to other countries also soared by 64 percent during the first five months of the current fiscal year.
NRB has attributed exports growth to India to the increase in the exports of readymade garments, shoes and sandals, tooth paste, G.I. pipe and noodles. “Rapid increase in the exports to other countries can be attributed to the upsurge in the exports of pulses, woolen carpets, pashmina, readymade garments and herbs,” it says.
In the first five months of 2008/09, total imports also went up by 32.6 percent compared to the same period last year.
Imports from India increased by 17.1 percent during the period, and imports from other countries also surged by 57.2 percent, compared to a growth of 4.5 percent a year earlier.
An increase in the import of petroleum products, vehicles and spare parts, cold rolled sheet, other machinery and parts, and textiles from India, and gold, MS billet, electrical goods, other machinery and parts, and computer and parts from other countries were largely responsible for the rise in total imports in the first five months of 2008/09.
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