Inflation moderates to 5.38%

KATHMANDU: The year-on-year consumer price inflation moderated to 5.38% in mid-November 2023, compared to 8.08% a year ago.

According to the Macroeconomic Situation Report for the first four months of the current fiscal year published on Thursday by the Nepal Rastra Bank, inflation in the food and beverage category stood at 6.01%, whereas non-food and service category inflation stood at 4.89%. Under the food and beverage category, the consumer price index of the spices sub-category increased by 36.46%, sugar and sugar products by 14.59%, fruits by 14.01%, cereal grains and their products by 12.02%, and milk products & eggs by 11%. On the other hand, the consumer price index of ghee & oil and vegetables sub-categories decreased by 14.23% and 5.35%, respectively, in the review month.

Under the non-food and services category, the year-on-year consumer price index of the recreation and culture sub-category increased by 12.84%, miscellaneous goods and services by 10.76%, education by 8.92%, furnishing and household equipment by 5.27%, and clothes and footwear by 4.96%.

Region-wise, price inflation in the Kathmandu Valley, Terai, Hill, and Mountain regions stood at 6%, 4.42%, 6.07%, and 8.79%, respectively.

The year-on-year wholesale price inflation stood at 2.09% in mid-November compared to 10.02% a year ago. The wholesale price index of consumption goods, intermediate goods, and capital goods increased by 2.63%, 1.71%, and 2.67%, respectively. On the other hand, the wholesale price of construction materials decreased by 1.05%.

Inflation in India, from where Nepal sources most of its imported products, remained at 5.55% in mid-November 2023.