Year-on-year (y-o-y) consumer price inflation reached 6.05% in mid-December 2024, marking the highest rate since mid-October 2023, according to the latest report by Nepal Rastra Bank (NRB).
Inflation had stood at 7.5% in mid-October 2023 before falling to 5.38% in mid-November and moderating to 3.57% by the end of the last fiscal year, 2023/24, in mid-July. However, it began rising again, hitting 4.09% in mid-August, dipping slightly to 3.86% in mid-September, and then climbing steadily to 4.82% in mid-October, 5.6% in mid-November, and 6.05% in mid-December.
The recent surge was driven by severe floods and landslides in late September, which disrupted roads and damaged crops, causing vegetable prices to soar right before the Dashain and Tihar festivals.
The Current Macroeconomic and Financial Situation Report for the first five months of the fiscal year, released on Friday, January 10, revealed that food and beverage inflation during mid-November to mid-December stood at a staggering 9.99%, while non-food and service inflation was 3.92%. In the same period last year, these categories had recorded price increases of 5.00% and 4.92%, respectively.
Under the food and beverage category, the y-o-y price index of vegetable sub-category increased 43.05%, pulses and legumes 10.66%, cereal grains and their products 9.70% and ghee and oil 9.39%. However, the y-o-y price index of spices sub-category decreased 1.18% and sugar and sugar products 0.83%.
Under the non-food and services category, y-o-y price index of miscellaneous goods and services sub-category increased 7.98%, alcoholic drinks 7.01%, clothes and footwear 6.75% and furnishing & household equipment 5.29%.
Read: Valley Residents Brace Themselves for Costlier Vegetables this Dashain
Province-wise, the inflation rates were highest in the review month in Koshi at 7.36%, followed by Madhes at 6.77%, Bagmati at 5.84%, Lumbini at 5.53%, Sudurpashchim at 6.66%, Gandaki at 4.81%, and Karnali at 4.19%.
Likewise, y-o-y consumer price inflation in the Kathmandu Valley, Tarai, Hill and Mountain regions surged to 5.82 %, 6.31 %, 5.65 % and 6.58 % respectively, in mid-December, according to the central bank report.
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