The year-on-year (y-o-y) consumer price inflation moderated to 3.75 percent in mid-March 2025 compared to 4.82 percent a year ago, according to the latest report of Nepal Rastra Bank (NRB).

Food and beverage inflation stood at 3.34 percent whereas nonfood and service inflation stood at 3.97 percent in the review month, reveals the Current Macroeconomic and Financial Situation Report of Nepal based on eight months’ data published by the central bank on Wednesday.

During the same corresponding period in the previous year, the price indices of these groups had increased 5.95 percent and 4.07 percent, respectively.

Under the food and beverage category, the y-o-y price index of ghee and oil sub-category increased 13.74 percent, pulses and legumes 7.80 percent, fruit 6.82 percent and non-alcoholic drinks 5.15 percent while the y-o-y price index of spices sub-category decreased 5.17 percent, vegetable 1.24 percent, and meat and fish 0.74 percent, according to the report.

Similarly, under the non-food and services category, the y-o-y price index of miscellaneous goods and services sub-category increased 10.14 percent, clothes and footwear 7.01 percent, alcoholic drinks 6.07 percent, furnishing and household equipment 5.59 percent, and transportation 5.07 percent.

During the review month, the y-o-y price index in rural areas increased 4.18 percent, while in urban areas, it rose 3.60 percent.

Based on provinces, in the y-o-y consumer price inflation in the review month in Koshi Province stood at 5.68 percent, Madhesh Province 3.52 percent, Bagmati Province 2.98 percent, Gandaki Province 2.77 percent, Lumbini Province 3.77 percent, Karnali Province 3.80 percent, and Sudurpashchim Province 4.41 percent.

The report added that the y-o-y consumer price inflation in the Kathmandu Valley, Terai, hill, and mountain regions surged 3.25 percent, 3.77 percent, 3.72 percent, and 4.77 percent respectively in the review month.