In mid-September 2024, Nepal’s inflation rate dropped to 3.85%, down from 8.19% a year ago and 4.10% in mid-August. The decrease is attributed to more stable prices in the non-food sector, with non-food inflation at 3.19% and food and beverage inflation at 5.03%.
Key price increases in the food category included pulses (10.80%), vegetables (9.84%), and cereal grains (9.34%), while spices saw a price decrease of 2.69%. Non-food items like alcoholic drinks (6.76%) and clothing (6.08%) also contributed to inflation.
The NRB noted that the stability in non-food prices has been a significant factor in lowering overall inflation. Despite the positive trend in inflation, concerns remain about reduced market demand, with many commercial spaces still empty.
Regionally, inflation rates varied, with rural areas experiencing a higher rate (4.04%) compared to urban areas (3.78%). Sudurpaschim Province recorded the highest inflation at 5.90%, while Bagmati Province had the lowest at 3.29%.
On a positive note, remittance inflows increased by 15.2% to Rs. 263.14 billion in the first two months of FY 2024/25, and foreign exchange reserves rose by 5.5% to Rs. 2,152.53 billion, enough to cover imports for 13.7 months. The balance of payments also showed a surplus of Rs. 101.77 billion, up from Rs. 55.1 billion last year.
