Inflation Moderates to 4.16% in Mid-February: NRB Report

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%).