Nepal’s inflation has moderated significantly in the first four months of the current fiscal year, falling to an average of 1.53% from 4.59% in the same period last year. This slowdown is detailed in the latest macroeconomic report released by Nepal Rastra Bank (NRB).
The year-on-year consumer price inflation stood at 1.11% in mid-November 2025, a sharp decline from 5.60% a year earlier. According to the central bank, this broad deceleration was primarily driven by a notable stabilization in food and beverage prices.
Sectoral Breakdown:
- Food & Beverage: Prices in this category saw a decrease of 3.32% between mid-October and mid-November. Key contributors to the decline included vegetables (-14.43%), spices (-7.85%), and pulses/legumes (-5.36%). However, increases were noted in ghee/oil (+5.25%), non-alcoholic drinks (+3.61%), and meat/eggs (+3.15%).
- Non-Food & Services: Inflation in this segment was measured at 3.69%. Significant price rises were recorded for miscellaneous goods/services (+15.17%), education (+7.56%), clothing/footwear (+6.29%), and tobacco (+4.84%).
Regional Variation:
Inflation showed moderate disparities across regions. Urban areas recorded a slightly higher year-on-year increase (1.26%) compared to rural areas (0.66%). Among provinces, Koshi (1.80%) and Madhesh (1.73%) saw the highest rates, while Gandaki (0.37%) and Sudurpashchim (0.26%) experienced the lowest.
Overall, the data indicates a period of considerable price stability in Nepal, with the easing of food costs serving as the major factor in curbing the overall inflation rate.
