While retail inflation was 5.7 percent in the same period last year, Nepal Rastra Bank (NRB) -- the monetary authority -- has blamed higher food and beverage prices for the failure to rein in inflation to the promised level.
A statement issued by NRB says that food and beverage prices increased by 17.2 percent during the period, whereas they had increased by 7.1 percent in the same period last year.
Among food and beverage commodities, the prices of sugar and related items recorded an alarming rise of almost 36 percent during the period. Prices of oil and ghee also rose by an uncomfortable 26.2 percent.
Likewise, the prices of rice and related items, which have the largest weight in the consumer price index, also increased by 21.8 percent during the period, while the prices of meat items went up 21.5 percent.
Moreover, the central bank states that prices in the non-food category also swelled by 10.8 percent during the period as compared to 4.1 percent last year.
With a rise in rates of 21.7 percent, the transportation and communication sectors became the most expensive during the period. The NRB report notes that prices of tobacco and related products increased by 15.1 percent. Prices for household goods and services went up 12.3 percent, compared to last year´s increase of 5.4 percent.
Closer analysis of the region-wise price situation shows that Kathmandu Valley recorded the highest rise of 16.2 percent during the period. The rise remained at 13.6 percent in the Hills and 13.1 percent in the Tarai.
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