KATHMANDU, Nov 15: The year-on-year (y-o-y) consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region surged to 10.23 percent, 5.66 percent, 7.38 percent and 10.24 percent respectively, the Nepal Rastra Bank (NRB) stated in its Current Macroeconomic and Financial Situation of Nepal Report based on three months data ending Mid-October, 2023/24.
Inflation in these regions were 6.93 percent, 9.42 percent, 8.84 percent and 7.07 percent respectively a year ago.
The Central Bank stated that the y-o-y consumer price inflation stood at 7.50 percent in mid-October 2023 compared to 8.50 percent a year ago. Food and beverage category inflation stood at 8.38 percent whereas non-food and service category inflation stood at 6.81 percent in the review month.
Under the Food and Beverage Category, y-o-y consumer price index of spices sub-category increased 37.63 percent, sugar and sugar products 18.22 percent, fruit 14.02 percent, cereal grains & their products 12.23 percent and milk products and eggs 11.92 percent. The y-o-y consumer price index of ghee & oil subcategory decreased 11.61 percent in the review month.
Under the Non-Food and Services Category, y-o-y consumer price index of recreation and culture subcategory increased 15.55 percent, miscellaneous goods and services 12.11 percent, education 9.10 percent, housing and utilities 8.08 percent and furnishing and household equipment 6.25 percent.
The y-o-y consumer price index of transportation sub-category decreased 1.62 percent in the review month.
Wholesale Price Inflation (WPI)
NRB fails to control consumer inflation
The y-o-y wholesale price inflation stood at 2.78 percent in mid-October 2023 compared to 13.73 percent a year ago.
The y-o-y wholesale price index of consumption goods, intermediate goods and capital goods increased 5.30 percent, 1.32 percent and 2.97 percent respectively. The y-o-y wholesale price of construction material decreased 0.34 percent in the review month.
Salary and Wage Rate Index (SWRI)
The y-o-y salary and wage rate index increased 5.65 percent in mid-October 2023 compared to 11.59 percent a year ago. The y-o-y Salary index and Wage rate index increased 1.05 and 7.05 percent respectively in the review month.
Merchandise exports decrease
During the review period, merchandise exports decreased 2.3 percent to Rs 40.87 billion compared to a decrease of 35.7 percent in the same period of the previous year.
Destination-wise, exports to India decreased 9.4 percent whereas exports to China and other countries increased 345.9 percent and 9.5 percent respectively.
Exports of zinc sheet, particle board, juice, cardamom, polyester yarn & thread, among others increased whereas exports of palm oil, soybean oil, jute goods, woolen carpet, rosin, among others decreased.
In the review period, merchandise imports increased 1.7 percent to Rs 407.76 billion compared to a decrease of 16.2 percent a year ago. Destination-wise, imports from India and China increased 2.4 percent and 42.4 percent respectively while imports from other countries decreased 22.8 percent.
Imports of readymade garments, M.S. wire rod, bars, and coils, chemical fertilizer, electrical equipment, textiles, among others increased whereas imports of crude soybean oil, crude palm oil, petroleum products, gold, M.S. billet, among others, decreased.
Based on customs points, exports from Bhairahawa, Dry Port, Jaleswor, Krishnanagar, Mechi, Nepalgunj, Rasuwa and Tribhuwan Airport Customs Offices increased whereas exports from all the other major customs points decreased in the review period.
On the import side, imports from Bhairahawa, Dry Port, Jaleshwor, Kanchanpur, Nepalgunj, Rasuwa and Tatopani Customs Offices increased whereas imports from all the other major customs points decreased in the review period.
Total trade deficit increased 2.1 percent to Rs 366.88 billion during the review period. Such a deficit had decreased 13.1 percent in the corresponding period of the previous year. The export-import ratio decreased to 10.0 percent in the review period from 10.4 percent in the corresponding period of the previous year.
During the review period, merchandise imports from India against payment in convertible foreign currency amounted to Rs 45.58 billion. This amount was Rs 34.59 billion in the same period of the previous year.
Composition of Foreign Trade
As per the Broad Economic Categories (BEC), the intermediate and final consumption goods accounted for 55.2 percent and 44.5 percent of the total exports respectively, whereas the ratio of capital goods in total exports remained negligible at 0.3 percent in the review period.
In the same period of the previous year, the ratio of intermediate, capital and final consumption goods remained 57.0 percent, 0.03 percent and 43.0 percent of total exports respectively.
On the import side, the share of intermediate goods remained 50.6 percent, capital goods 8.5 percent and final consumption goods 40.9 percent in the review period. Such ratios were 53.2 percent, 8.3 percent and 38.5 percent respectively in the same period of the previous year.
