August 22, 2017<\/strong><\/p>\n Annual inflation in Nepal has declined to a 12-year low of 4.5 percent in fiscal year 2016-17 due to a moderate rise in costs of food and non-food items.<\/p>\n The inflation figure is lower than the Nepal Rastra Bank\u2019s (NRB) estimate of 7.5 percent. This is the third time NRB had beaten its own inflation target inflation ever since it launched annual monetary policy in 2002-03. Prior to this, it was in 2003-04 and 2006-07.<\/p>\n The latest Macroeconomic Report of the Nepal Rastra Bank (NRB) informed that annual inflation of the previous fiscal year that ended on July 2017 is the lowest since 2004-05.<\/p>\n According to the report, consumer prices grew at a much slower pace than estimated in 2016-17 benefited by base prices of the fiscal year 2015-16, lower global commodity prices and improved supply situation.<\/p>\n However, there exists uncertainty on whether the inflation would continue to be moderate because of the recent floods that have damaged Rs 8.11 billion worth crops across 31 districts of the country.<\/p>\n As per the Ministry of Agriculture and Development (MoAD), the floods have so far damaged paddy Rs 3.18 billion, vegetables (Rs 2.96 billion), pulses (Rs 536 million), fishes (Rs 800 million), turmeric (Rs 340 million) and maize (Rs 241 million).<\/p>\n