Year-On-Year Inflation Moderates to 2.42 Percent in Mid-January

The year-on-year (y-o-y) consumer price inflation moderated to 2.42 percent in mid-January 2026 compared to 5.41 percent a year ago, according to the latest report of Nepal Rastra Bank.

Unveiling the Current Macroeconomic and Financial Situation Report of Nepal based on six months of data, the central bank said food and beverage inflation decreased 0.09 percent whereas non-food and service inflation stood at 3.81 percent in the review month. During the corresponding period in the previous year, the price indices of these groups had increased 7.67 percent and 4.19 percent, respectively.

Meanwhile, the average inflation stood at 1.70 percent in the sixth month (mid-December to mid-January) of the current fiscal year compared to 4.97 percent a year ago, the report added.

Under the food and beverage category, y-o-y price index of fruit sub-category increased 5.20 percent, ghee and oil 4.96 percent, and non-alcoholic drinks 3.04 percent while y-o-y price index of pulses and legumes sub-category decreased 5.52 percent, spices 3.92 percent, and cereal grains and their products 3.70 percent.

Under the non-food and services category, y-o-y price index of miscellaneous goods and services sub-category increased 21.75 percent, education 7.56 percent, clothes and footwear 5.29 percent, tobacco products 4.15 percent, and alcoholic drinks 3.85 percent while y-o-y price index of insurance and financial services sub-category decreased 0.03 percent.

During the review month, y-o-y price index in rural areas increased 1.99 percent, while in urban areas, it rose 2.57 percent.

Based on provinces, y-o-y consumer price inflation during the review month in Koshi Province stood at 3.25 percent, Madhesh Province 3.37 percent, Bagamati Province 2.10 percent, Gandaki Province 1.76 percent, Lumbini Province 2.62 percent, Karnali Province 1.08 percent, and Sudurpashchim Province 1.27 percent.