Inflation last year eased to 3.6 percent despite notable rise in prices of edible oil and pulses

Published On: August 26, 2021 07:20 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, August 26: Consumer inflation in the last fiscal year stood at 3.6 percent, which is probably the lowest annual average price rise in the past two decades.  

According to the ‘Current Macroeconomic and Financial Situation of Nepal’ released by the Nepal Rastra Bank (NRB) on Thursday, the inflation rate in 2020/21 was lower by 2.55 point percent compared to that of 6.15 percent in 2019/20.

The inflation last year was attributed mainly to the soaring prices of edible oils and pulses and legumes in particular. The NRB records show that the average consumer price of ghee and oil, pulses and legumes, tobacco products, and transportation sub-groups rose 17.54 percent, 10.65 percent, 9.83 percent and 6.41 percent respectively on an annual basis.

According to NRB officials, the prices of edible oils increased mainly due to the soaring price of raw materials in the international market. Nepal imports almost all the oilseed to maintain its supply to the domestic market.

The annual average non-food and services inflation stood at 2.51 percent in 2020/21 compared to 4.61 percent a year ago.

The inflation in the Kathmandu Valley subdued to 3.33 percent from 6.96 percent during the review period. The inflation in terai was down to 3.68 percent from 6.29 percent. While the inflation in the hills stood at 3.87 percent, down from 5.10 percent, this declined to 2.87 percent from 4.91 percent in the mountain region. 


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