Consumer price inflation moderates to 4.61%

KATHMANDU: Consumer price inflation eased to 4.61% in the ninth month of the fiscal year 2023/24 (mid-March to mid-April) compared to 7.76% in the same period a year earlier.

Nepal Rastra Bank’s latest Current Macroeconomic and Financial Situation Report shows food and beverage inflation stood at 5.21%, while non-food and service inflation was recorded at 4.14%. Within the food and beverage category, prices of spices surged by a staggering 22.64% year-on-year, followed by vegetables (16.99%), pulses and legumes (10.94%), cereal grains and their products (7.59%), and non-alcoholic drinks (6.06%). However, the prices of ghee and oil decreased by 10.10% during the same period.

In the non-food and services category, the miscellaneous goods and services sub-category saw a 12.81% increase in prices, followed by recreation and culture (12.61%) and education (2%). Interestingly, the transportation sub-category experienced a nominal 0.33% decline in prices.

The consumer price inflation in the Kathmandu Valley stood at 4.06%, while the Terai, Hill, and Mountain regions witnessed inflation rates of 4.58%, 5.33%, and 4.32%, respectively. A year ago, Kathmandu recorded a significantly higher inflation rate of 8.57%, while other regions experienced price hikes of 7.68%, 7.01% and 7.47%, respectively.

The wholesale price inflation also moderated to 4.94% in mid-April 2024, compared to 5.59% a year earlier. While the wholesale price index of consumption goods increased by 9.64%, those of intermediate goods and capital goods rose by 2.88% and 1.56%, respectively. However, the wholesale price index of construction materials saw a decline of 7.20%.