Inflation Drops to 4.95 Percent

January 12, 2024 | Investopaper

Nepal Rastra Bank (NRB) has published the annual report on ‘Current Macroeconomic and Financial Situation of Nepal (Based on 5 Months’ Data Ending Mid-December, 2023/24)’. As per the latest report, the annual average consumer price inflation stood at 4.95 percent in midDecember 2023 compared to 7.38 percent a year ago.

Food and beverage category inflation stood at 5.10 percent whereas non-food and service category inflation stood at 4.84 percent in the review month. Moderating y-o-y prices of commodities under ghee & oil, vegetables and meat & fish sub-categories coupled with two downward adjustments of petroleum product prices by Nepal Oil Corporation and decline in prices of vegetables, fruits, spices and sugar compared to the previous month contributed to the subdued inflationary pressure in the review month.

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During the review month, the y-o-y import price index declined by 3.3 percent. This was accompanied by moderating growth rates in both the salary and wage rate index and the wholesale price index which also contributed to a decline in consumer price inflation.

Under the Food and Beverage Category, y-o-y price index of ghee & oil, vegetable and meat & fish sub-category decreased 13.66 percent, 8.37 percent and 0.13 percent respectively in the review month. The y-o-y price index of spices sub-category increased 37.22 percent, fruit 13.37 percent, sugar & sugar products 13.24 percent, cereal grains & their products 11.30 percent, milk products & eggs 10.59 percent and pulses & legumes 10.56 percent

Likewise, under the Non-Food and Services Category, yy-o-yprice index of transportation sub-category decreased 2.48 percent in the review month. The y-o-y price index of recreation & culture subcategory increased 12.84 percent, miscellaneous goods & services 11.03 percent, education 8.92 percent, furnishing & household equipment 5.24 percent and clothes & footwear 4.96 percent.

In the review month, the y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region stood at 5.42 percent, 4.26 percent, 5.42 percent and 7.46 percent respectively in the review month. Such inflation in these regions were 6.56 percent, 8.00 percent, 7.32 percent and 6.48 percent respectively a year ago.

The y-o-y wholesale price inflation stood at 2.63 percent in mid-December 2023 compared to 9.15 percent a year ago.


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