The year-on-year (y-o-y) consumer price inflation in Nepal increased to 5.41 percent in mid-January 2025 from 5.26 percent a year ago, according to the latest report of Nepal Rastra Bank (NRB).

The Current Macroeconomic and Financial Situation Report released by the central bank on Sunday stated that the food and beverage inflation stood at 7.67 percent whereas non-food and service inflation stood at 4.19 percent in the review month.

During the corresponding period in the last year, the price indices of these groups had increased by 5.75 percent and 4.93 percent respectively, added the report.

Under the food and beverage category, y-o-y price index of vegetable sub-category increased 28.52 percent, ghee and oil 10.67 percent, pulses and legumes 9.48 percent and cereal grains and their products 7.23 percent while the y-o-y price index of spices sub-category decreased 3.12 percent.

Under the non-food and services category, y-o-y price index of miscellaneous goods and services sub-category increased 9.35 percent, alcoholic drinks 7.01 percent, clothes and footwear 6.75 percent and furnishing and household equipment 5.29 percent, mentions the report.

During the review month, y-o-y price index in rural areas increased by 5.68 percent, while it rose by 5.31 percent in urban areas.

Based on provinces, the y-o-y consumer price inflation in Koshi Province stood at 6.73 percent in the review month while that of Madhesh Province was 5.96 percent, Bagmati Province 5.14 percent, Gandaki Province 4.37 percent, Lumbini Province 4.83 percent, Karnali Province 4.60 percent, and Sudurpashchim Province 5.67 percent.

In the review month, the y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region surged to 5.03 percent, 5.60 percent, 5.41 percent and 5.27 percent respectively.

The monetary policy of Nepal Rastra Bank for the current fiscal year has set a target to keep inflation at 5 percent.