Year-on-year (y-o-y) consumer price inflation in Nepal moderated to 4.16% in mid-February, down from 5.01% a year ago, according to the latest Nepal Rastra Bank (NRB) report.  

The Current Macroeconomic and Financial Situation Report , covering the first seven months of the fiscal year was released on Monday, March 10. It showed that food and beverage inflation stood at 4.95%, while non-food and service inflation was recorded at 3.74% between mid-January and mid-February. In comparison, the same period last year had seen price increases of 6.59% and 3.98%, respectively.  

Under the food and beverage category, the price of ghee and oil surged by 12.8%, followed by pulses and legumes (9.06%), vegetables (7.56%), and cereal grains and their products (6.36%). However, the price of spices declined by 2.98%, making it the only subcategory to see a drop.  

In the non-food and services category, the price of miscellaneous goods and services saw the highest increase at 10.91%. Other notable increases were recorded in clothes and footwear (5.36%), alcoholic drinks (5.08%), transportation (5.01%), tobacco products (4.1%), and furnishing and household equipment (4.07%).  

Inflation remained higher in rural areas, where the y-o-y increase stood at 4.73%, compared to 3.96% in urban areas. Among the provinces, Koshi recorded the highest inflation rate at 6.15%, followed by Sudurpashchim at 4.71%, Lumbini at 4.16%, Karnali at 4.05%, Madhesh at 3.91%, Gandaki at 3.40%, and Bagmati at 3.35%, the lowest among all provinces.  

By region, inflation was the highest in the Mountain region at 5.21%, followed by the Tarai (4.25%), Hill (4.11%), and Kathmandu Valley (3.53%).