Nepal’s Consumer Price Inflation Eases to 4.61% Amidst Moderate Non-Food and Service Costs

KATHMANDU: The latest figures from Nepal Rastra Bank (NRB) reveal a notable moderation in consumer price inflation, settling at 4.61% between mid-March and mid-April, down from 4.82% recorded in the previous month. This decline is primarily attributed to the sluggish uptick in prices within the non-food and services category during the period.

According to the Current Macroeconomic and Financial Situation Report of Nepal, unveiled by the NRB on Sunday, inflation within the non-food and service category stood at 4.14%, while prices within the food and beverage category witnessed a milder increase, reaching 5.21%.

Comparatively, consumer inflation in the prior month stood at 5.01%. The NRB’s report indicates a significant year-on-year moderation in consumer price inflation in mid-April 2024, as opposed to 7.76% recorded in the corresponding month the previous year.

Breaking down the inflation dynamics, under the Food and Beverage Category, the year-on-year price index of spices surged by 22.64%, vegetables by 16.99%, pulses and legumes by 10.94%, cereal grains and their products by 7.59%, and non-alcoholic drinks by 6.06%. Conversely, the price index of the ghee and oil sub-category witnessed a notable decrease of 10.10% in the review month.

Within the non-food and services category, the year-on-year price index of miscellaneous goods and services surged by 12.81%, while the recreation and culture sub-category recorded an increase of 12.61%. Additionally, the education index experienced a hike of 7.31%, while transportation costs decreased marginally by 0.33% last month.

Geographically, consumer price inflation in the Kathmandu Valley stood at 4.06%, marking a significant decrease from 8.57% recorded last year. Similarly, the price hike in the Terai region declined to 4.58% from 7.68%, while the hilly region witnessed a decrease to 5.33% from 7.01%. The mountain region also experienced a notable reduction, with inflation easing to 4.32% from 7.47% in the review month.