Inflation moderates to 3.57%

KATHMANDU: Consumer price inflation moderated to 3.57% in mid-July 2024 compared to 7.44% a year ago.

The annual average consumer price inflation for 2023/24 was 5.44%, down from 7.74% in the previous fiscal year, according to the Current Macroeconomic Situation Report for 2023/24 released on Sunday.

Prices of a few edibles, however, increased significantly. Spices led the inflation with a 26.40% rise, followed by pulses and legumes at 9.96%, sugar and sugar products at 9.87%, and cereal grains and their products at 9.85%. Vegetables also saw 8.29% price rise. The ghee and oil subcategory experienced a significant price decline of 10.99%.

In the non-food and services category, miscellaneous goods and services saw the highest price rise of 11.38%, followed by recreation and culture at 10.96% and education at 7.73%. On the other hand, the transportation subcategory saw a slight decrease of 0.82%.

Similarly, annual average food and beverage inflation stood at 6.47% in 2023/24, slightly lower than the 6.62% percent recorded in the previous year. The non-food and services category inflation showed a more substantial decrease, dropping to 4.64% from 8.62% a year ago.

In terms of geography, Kathmandu Valley saw inflation rise to 5.99%, while Tarai, Hilly, and Mountainous regions saw inflation rates of 4.82%, 5.78% and 6.86%, respectively.