Inflation moderated to 5.26 percent last month due to decline in price hike of edibles

Published On: February 6, 2024 08:31 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Feb 6: The consumer price inflation moderated to 5.26 percent as of mid-January, compared to 7.26 percent a year ago.

The records with Nepal Rastra Bank (NRB) show that the consumer price inflation slowed down mainly due to check in the price hikes of the edibles. The year-on-year price index of ghee and oil, vegetables, meat and fish and transportation sub-categories exhibited a downward trend in mid-January 2024.

Additionally, the price index of spices and sugar and sugar products were also moderated. In the review month, food and beverage category inflation stood at 5.77 percent whereas non-food and service category inflation stood at 4.85 percent.

Under the food and beverage category, the year-on-year price index of ghee and oil, vegetable and meat and fish sub-category decreased 13.07 percent, 1.04 percent and 0.06 percent, respectively. Likewise, the year-on-year price index of spices sub-category increased 35.60 percent, cereal grains and their products 11.38 percent, pulses and legumes 11.14 percent, milk products and eggs 10.29 percent and fruit 10.15 percent.

Under the non-food and services category, the year-on-year price index of transportation sub-category decreased 1.62 percent in the review month. The price index of recreation and culture sub-category increased 12.84 percent, miscellaneous goods and services 9.73 percent, education 8.92 percent, furnishing and household equipment 5.18 percent and clothes and footwear 4.96 percent.

Region-wise, the consumer price inflation in the Kathmandu Valley, Terai, hill and mountain region stood at 5.76 percent, 4.78 percent, 5.40 percent and 6.57 percent, respectively, in the review month. Last year, the year-on-year inflation rates in these regions were 6.93 percent, 7.49 percent, 7.30 percent and 6.69 percent, respectively.

The NRB records show that the inflation however rose by 0.67 percent last month when compared to that of the previous month. In one month during mid-November and mid-December, the country’s consumer price inflation was 4.95 percent.