According to a Five Months' Data of 2015/16 unveiled by Nepal Rastra Bank (NRB), the inflation which was already in double-digit in mid-November climbed further in the fifth month.
The spiral-like price rise supports the central bank’s earlier warning that the price rise could go out of its control.
Earlier last month, the NRB had warned that the rise of the inflation and possible contraction in the economic output could push the country toward stagflation.
The central bank had pointed the protracted turmoil in the Tarai region and ‘disruption on trade routes in the southern parts of the country’ as the underlying factors to push the prices up in recent months.
The central bank, however, has expressed optimism about the recent relaxation of the unofficial economic blockade in recent days.
“The recent relaxation of obstruction on most of the trade routes is likely to break the spiral-like rise in prices witnessed since mid-September 2015,” the report of the NRB added.
According to the data, Kathmandu Valley saw a relatively higher rate of inflation at 13.2 percent followed by Hilly region at 12.4 percent, Mountain region at 10.3 percent and Tarai region at 10.2 percent in the review period.
Inflation, which was on a moderate level in the last fiscal year, has started rising at an alarming rate since mid-September in the wake of Tarai turmoil and India-imposed economic blockade.
Economists say that the supply side constraints due to the blockade and strikes have pushed up the prices of most of the commodities and services in the recent months.
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