Friday 25th September 2020

Nepal’s Inflation Increases to 6.82%

The increase in inflation is attributed to the rise in prices of the consumable goods in the country
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Nepal’s Inflation Increases to 6.82%

Nepal’s year-on-year (y-o-y) consumer price inflation has increased to 6.82% in the first six months of the current FY 2019-20.

The increase in inflation is primarily attributed to the rise in prices of the consumable goods in the country.

According to the Macroeconomic and Financial Situation Report released by Nepal Rastra Bank (NRB), the inflation reached 6.82% in mid-January 2020 against 4.58% last fiscal.

1) Food and Beverage Inflation: 21%
The significant rise in prices of vegetables, spices, pulses, legumes and fruits in the review month has led to the rise in food and beverage inflation.

2) Non-Food and Service Inflation: 4.25%
The moderate rise in the prices of education, clothes and footwear, furnishing, and household equipment in the review month has instigated the rise in non-food and service inflation.

Inflation in Various Regions:

Region Current Fiscal Last Fiscal
Kathmandu Valley 7.24% 5.15%
Terai 7.46% 4.02%
Hill 5.39% 4.92%
Mountain 5.01% 4.48%

Other Prominent Stats

  • Wholesale Price Inflation: Increased to 7.88% against 6.04 last fiscal
  • Salary and Wage Rate Index (y-o-y): Increased to 10.04% against 9.30% last fiscal
  • Salary Index: Increased to 13.56%
  • Wage Rate Index: Increased to 9.06%
  • Wholesale Price of Construction Materials: Dropped by 5.06%

Moreover, the price of food under primary group; and prices of food, beverage, tobacco and leather products under manufactured group increased considerably.

In the review month, the increase in y-o-y price of various goods is as follows:

Y-o-Y Prices Current Fiscal
Consumption Goods Increased by 10.20%
Intermediate Goods Increased by 7.58%
Capital Goods Increased by 2.50%

Likewise, the y-o-y consumer price inflation in India in the review month reached 7.59%.

Nepal Inflation Rate: 2015 – 2019

Nepal Inflation Rate from 2015 to 2019

The NRB has published the Macroeconomic and Financial Situation Report on February 16, 2020.

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