Consumers in Nepal can breathe a sigh of relief as the steep rise in daily essentials seen in recent months has eased, thanks to a moderated inflation rate in both food and non-food items, according to data from Nepal Rastra Bank (NRB).
The NRB’s Current Macroeconomic and Financial Situation Report for the first eight months of Fiscal Year 2024/25 reveals that year-on-year inflation declined to 3.75 percent as of mid-March. This marks a 1.07 percentage point drop from the same period last year, when inflation stood at 4.82 percent. The figure is also lower than the 4.16 percent inflation recorded in the previous month of this year.
The report highlights that the average market price of food increased by 3.34 percent—significantly lower than the 5.95 percent growth recorded earlier. Non-food and service inflation also fell slightly to 3.97 percent from 4.07 percent.
Within the food and beverage category, prices of ghee and oil surged by 13.74 percent, pulses and legumes by 7.80 percent, and fruits by 6.82 percent. In contrast, prices of spices, vegetables, and meat and fish dropped by 5.17 percent, 1.24 percent, and 0.74 percent respectively.
For non-food and services, miscellaneous goods and services rose by 10.14 percent, clothes and footwear by 7.01 percent, alcoholic beverages by 6.07 percent, transportation by 5.07 percent, and furnishing and household equipment by 5.59 percent.
Regionally, Koshi Province reported the highest consumer price inflation at 5.68 percent, followed by Sudurpaschim (4.41%), Karnali (3.80%), Lumbini (3.77%), Madhesh (3.52%), Bagmati (2.98%), and Gandaki (2.77%).
By geographical region, the mountain areas saw the highest inflation at 4.77 percent. Inflation in the Terai was 3.77 percent, followed by the hills at 3.72 percent and Kathmandu Valley at 3.25 percent.
The NRB attributes this moderation in inflation largely to the slower rise in food prices, particularly vegetables. The government has set a target to keep inflation within 5.5 percent for the current fiscal year.
