KATHMANDU, Dec 16: Nepal’s inflation rate declined further to 1.53 percent in the first four months of the current fiscal year (FY) from 4.59 percent recorded in the same period of the last FY.
The ‘Current Macroeconomic and Financial Situation Report of Nepal’ unveiled by Nepal Rastra Bank (NRB) on Monday shows that the country’s average price hike slowed down during mid-July and mid-November. As of the first quarter this FY, the inflation rate was 1.67 percent.
The year-on-year consumer price inflation was also down at 1.11 percent in mid-November 2025, compared to 5.60 percent a year ago. According to the central bank, the slowdown in inflation was mainly driven by stabilizing prices of food and beverage items during the review period.
Revised interest rate corridor system introduced
During mid-October to mid-November, the food and beverage inflation decreased 3.32 percent whereas non-food and service inflation stood at 3.69 percent. In the review month of FY 2024/25, the price indices of these groups increased 9.10 percent and 3.65 percent, respectively.
Under the food and beverage category, y-o-y price index of ghee and oil sub-category increased 5.25 percent, non-alcoholic drinks 3.61 percent and meat products and eggs 3.15 percent while y-o-y price index of vegetable sub-category decreased 14.43 percent, spices 7.85 percent and pulses and legumes 5.36 percent.
Under the non-food and services category, y-o-y price index of miscellaneous goods and services sub-category increased 15.17 percent, education 7.56 percent, clothes and footwear 6.29 percent, tobacco products 4.84 percent, and furnishing and household equipment 4.55 percent while y-o-y price index of insurance and financial services sub-category decreased 0.23 percent.
During the review month, the y-o-y price index in rural areas increased 0.66 percent, while in urban areas, it rose 1.26 percent.
Based on provinces, y-o-y consumer price inflation in the review month in Koshi Province stood at 1.80 percent, Madhesh Province 1.73 percent, Bagmati Province 0.81 percent, Gandaki Province 0.37 percent, Lumbini Province 1.27 percent, Karnali Province 1.08 percent, and Sudurpashchim Province 0.26 percent.
Likewise, the y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region stood at 1.16 percent, 1.24 percent, 0.88 percent and 1.06 percent, respectively.
