Inflation Drops to 1.11% in mid-November

The average inflation in Nepal moderated to 1.53 percent in the month of Kartik (mid-October to mid-November) largely due to the decline in price index of food and beverage category, according to the latest report of Nepal Rastra Bank (NRB).

The Current Macroeconomic and Financial Situation Report of Nepal released by the central bank on Monday revealed that the average inflation in the corresponding month a year ago stood at 4.59 percent.

Meanwhile, the report added that the year-on-year (y-o-y) consumer price inflation dropped to 1.11 percent in mid-November 2025 compared to 5.60 percent a year ago.

According to the NRB report, food and beverage inflation decreased by 3.32 percent whereas non-food and service inflation stood at 3.69 percent in the review month. During the same period in the previous year, the price indices of these groups had increased 9.10 percent and 3.65 percent, respectively.

Under the food and beverage category, the y-o-y price index of ghee and oil sub-category increased by 5.25 percent, nonalcoholic drinks 3.61 percent and milk products and eggs 1.97 percent while the y-o-y price index of vegetable sub-category decreased 14.43 percent, spices 7.85 percent and pulses and legumes 5.36 percent.

Under the non-food and services category, the y-o-y price index of miscellaneous goods and services sub-category increased by 15.17 percent, education 7.56 percent, clothes and footwear 6.29 percent, tobacco products 4.84 percent, and furnishing and household equipment 4.55 percent while y-o-y price index of insurance and financial services sub-category decreased 0.23 percent.

During the review month, the y-o-y price index in rural areas increased 0.66 percent, while in urban areas, it rose 1.26 percent.

Based on provinces, the y-o-y consumer price inflation in the review month stood at 1.80 percent in Koshi Province, 1.73 percent in Madhesh Province, 0.81 percent in Bagamati Province, 0.37 percent in Gandaki Province, 1.27 percent in Lumbini Province, 1.08 percent in Karnali Province, and 0.26 percent in Sudurpashchim Province.

In the review month, the y-o-y consumer price inflation in the Kathmandu Valley, Terai, hill and mountain regions stood at 1.16 percent, 1.24 percent, 0.88 percent and 1.06 percent respectively.