KATHMANDU, Dec 13: The consumer price inflation stood at 5.60 percent in mid-November, which was higher than the government-set annual target of five percent for the current fiscal year.
The Current Macroeconomic and Financial Situation Report of Nepal for the first four months of the FY 2024/25 unveiled by Nepal Rastra Bank (NRB) on Thursday shows that the average market price in one month during mid-October and mid-November surged by 0.78 percentage points compared to the previous month. On a year-on-year basis, the inflation rose 0.22 percentage points from 5.38 percent in the review month last year.
According to the NRB, the hike in consumer price index was mainly due to the surge in food prices. The year-on-year price index of the vegetable sub-category increased by 33.99 percent, pulses and legumes by 10.78 percent, cereal grains and their products by 10.15 percent, and ghee and oil increased by 9.29 percent.
Consumer price inflation moderated to 4.10 percent last month d...
The food prices have been escalating since the natural disasters in September that hit many regions across the country. Traders complained of the damaged food grains stored in a number of warehouses and adverse effects on the supply chain behind skyrocketed prices. Although the main harvesting season of food grains and vegetables has already started, the traders are reluctant to reduce prices of food items.
“Prices of almost all vegetables cost above Rs 100 per kg now. In the main season last year, the vegetables were up to 50 percent cheaper than the current price,” said Sugam Basnet, who was found purchasing groceries at the Dhumbarahi-based vegetable market on Thursday morning.
In the review month, under the non-food and services category, the price index of miscellaneous goods and services sub-category increased by 10.41 percent, alcoholic drinks by 6.35 percent, clothes and footwear by 4.57 percent and tobacco products by 4.24 percent.
According to the NRB, the price hike in rural areas was 6.19 percent compared to 5.39 percent in urban areas. The CPI of the mountain region rose by the largest of 6.78 percent.
Province-wise, the price inflation was the highest of 7.19 percent in Koshi Province. Sudurpashchim Province with 6.57 percent stood at second position, followed by Madhesh Province with 5.72 percent and Bagmati Province with 5.35 percent.
The central bank considers a basket of 525 goods and services from 87 different markets across 77 districts to estimate inflation. The price in FY 2014/15 is considered as the base year price for this purpose.
