Nepal Rastra Bank’s report for the first two months of fiscal year 2026/27 shows rising inflation alongside improvements in remittance inflows, foreign trade, the current account and foreign exchange reserves. However, private-sector credit growth and government capital expenditure remain sluggish.
Year-on-year consumer inflation reached 6.34% in mid-September 2026, up from 1.87% a year earlier. Food and beverage inflation stood at 7.54%, with prices of ghee and oil rising 16.68% and fruits 15.99%. Wholesale inflation also increased to 8.08%.
Merchandise exports rose 61.9% to Rs 76.59 billion, while imports increased 31.6% to Rs 401.52 billion. The trade deficit widened 26% to Rs 324.93 billion.
Remittance inflows grew 23.9% to Rs 436.36 billion, helping the current account record a surplus of Rs 169.04 billion. The overall balance of payments surplus reached Rs 187.68 billion, while foreign exchange reserves rose to Rs 4.066 trillion, sufficient to cover 20.9 months of merchandise imports.
Government expenditure totalled Rs 199.84 billion, but capital spending amounted to just Rs 7.66 billion. Revenue collection reached Rs 183.21 billion. Meanwhile, private-sector credit increased 1.6% to Rs 5.951 trillion, and bank deposit rates and lending rates remained relatively low amid ample liquidity.
NEPSE stood at 2,612.43 points at mid-September, with market capitalisation reaching Rs 4.497 trillion. Digital payments also remained substantial, with mobile banking transactions worth Rs 614.67 billion and QR-code payments worth Rs 167.93 billion recorded in August.
