Consumer inflation closer to double digit until mid-June

KATHMANDU: The y-o-y consumer price inflation stood at 8.56 percent in the eleventh month of FY 2021/22 compared to 4.19 percent a year ago. Food and beverage inflation stood at 7.43 percent whereas non-food and service inflation stood at 9.44 percent in the review month. The average monthly y-o-y inflation for 11 months was 6.09 percent.

According to a 11-month report on ‘Current Macroeconomic and Financial Situation of Nepal’ unveiled by Nepal Rastra Bank (NRB) on Monday, the consumer price index surged by an additional 0.69 percent during mid-May and mid-June this year.

Under the food and beverage category, the prices of ghee & oil, milk products & eggs, tobacco products, alcholic drinks and pulses & legumes sub-categories rose by 22.60 percent, 11.22 percent, 9.70 percent, 9.68 and 9.13 percent
respectively on y-o-y basis. Likewise, under the non-food and services category, the prices of transportation, education, furnishing & household equipment, recreation & culture and housing & utilities sub-categories rose by 25.79 percent, 11.64 percent, 8.30 percent, 8.21 percent and 7.84 percent respectively on y-o-y basis.

In the review month, the Kathmandu Valley, Terai, Hill and Mountain witnessed 8.32 percent, 8.29 percent, 9.28 percent and 8.92 percent inflation respectively. Inflation in these regions was 3.87 percent, 4.47 percent, 4.32 percent and 1.72 percent respectively a year ago.