The Nepal Rastra Bank (NRB) has revised the base year for its Consumer Price Index (CPI) for the first time in nine years, changing it from FY 2014/15 to FY 2023/24. This decision follows widespread criticism regarding the accuracy of the inflation figures published by the bank, which many believe do not accurately reflect the rising prices of essential goods faced by consumers.
The NRB will now consider 525 goods and services from 87 markets across 77 districts to calculate the CPI, an increase from the previous total of 496 items. As part of this update, 106 outdated goods and services have been removed, while new items that better reflect current consumer usage have been added.
The new methodology includes weekly data collection for 59 items, monthly collection for 94 items, and quarterly data for the remaining 372 items. The weightage for the food and beverage category has been adjusted to 45.79 percent, up from 43.91 percent, while the weight for non-food and services has decreased to 54.21 percent from 56.09 percent.
Additionally, the NRB will publish the CPI in accordance with Nepal’s federal structure for the first time. This new Consumer Price Index was developed by a joint committee involving the NRB, the Department of Statistics at Tribhuvan University, and the National Statistics Office.
