The y-o-y consumer price inflation remained at 8.08% in mid-November 2022 compared to 6.04% a year ago, according to the Current Macroeconomic and Financial Situation of Nepal (based on four months’ data ending mid-November, 2022/23) released by Nepal Rastra Bank.
Food and beverage inflation stood at 7.38% while non-food and service inflation rose to 8.63% in the review month.
Under the food and beverage category, y-o-y price index of restaurant and hotel sub-category increased 15.97%, tobacco products 11.81%, milk products and eggs 9.33%, cereal grains and their products 9.19% and alcoholic drinks 8.84%.
Under the non-food and services category, y-o-y price index of transportation sub-category increased 17.71%, health 11.22%, recreation & culture 8.76%, housing & utilities 8.49% and furnishing & household equipment 8.33%.
In the review month, consumer price inflation in the Kathmandu Valley, Tarai, Hill and Mountain remained at 7.56%, 8.52%, 8.03% and 6.68% respectively. Inflation in these regions was 6.14%, 5.42%, 7.14% and 5.00% respectively during the same period in the previous fiscal year.
In the review period, capital transfer increased 18.1% to Rs 2.97 billion and net foreign direct investment (FDI) remained Rs 429.2 million. In the same period of the previous year, capital transfer and net FDI amounted to Rs 2.52 billion and Rs.6.63 billion respectively.
During the four months of the current FY, merchandise exports decreased 33.3% amounting Rs 54.77 billion against an increase of 104.3% in the same period of the previous year. Destination-wise, exports to India and China decreased 42.3% and 34.2% respectively while exports to other countries increased 7.4%. Exports of zinc sheet, particle board, woollen carpets, tea, and readymade garments, among others, increased while exports of soyabean oil, palm oil, oil cakes, jute goods, and textiles, among others, decreased.
Likewise, remittance inflows increased 20.4% to Rs 378.04 billion in the review period against a decrease of 7.0% in the same period of the previous year. In US Dollar terms, remittance inflows increased 10.8% to 2.93 billion in the review period against a decrease of 7.3% in the same period of the previous year.
The number of Nepali workers (institutional and individual-new) taking approval for foreign employment increased 102.5% to 195,196 in the review period. The number of Nepali workers (Renew entry) taking approval for foreign employment increased 46.4% to 87,428 in the review period. It had increased 249.1% in the same period of the previous year.
Net transfer increased 20.2% to Rs 417.38 billion in the review period. Such a transfer had decreased 6.9% in the same period of the previous year.
Balance of Payments (BOP) remained at a surplus of Rs 20.03 billion in the review period compared to a deficit of Rs 150.38 billion in the same period of the previous year. In US Dollar terms, the BOP remained at a surplus of 149.6 million in the review period compared to a deficit of 1.27 billion in the same period of the previous year.
Gross foreign exchange reserves increased 2.5% to Rs 1246.27 billion in mid-November 2022 from Rs 1215.80 billion in mid-July 2022.
In US dollar terms, the gross foreign exchange reserves increased 1.0% to 9.63 billion in mid-November 2022 from 9.54 billion in mid-July 2022.
During the four months of current FY, the total expenditure of the federal government according to data from Financial Comptroller General Office (FCGO), Ministry of Finance, stood at Rs 351.00 billion.
The recurrent expenditure, capital expenditure and financial management expenditure amounted to Rs 281.39 billion, Rs 26.30 billion and Rs 43.31 billion respectively in the review period.
In the review period, the total revenue mobilisation of the Federal Government (including the amount to be transferred to provincial and local governments) stood at Rs 268.07 billion. The tax revenue amounted to Rs 245.79 billion and non-tax revenue amounted to Rs 22.28 billion in the review period.
Broad money (M2) increased 1.0% in the review period compared to an increase of 1.4% in the corresponding period of the previous year. On y-o-y basis, M2 expanded 6.4% in mid-November 2022.
Deposits at Banks and Financial Institutions (BFIs) increased Rs 46.74 billion (0.9%) in the review period compared to an increase of Rs. 62.42 billion (1.3%) in the corresponding period of the previous year. On y-o-y basis, deposits at BFIs expanded 8.6% in mid-November 2022.
Private sector credit from BFIs increased Rs 68.55 billion (1.5%) in the review period compared to an increase of Rs 364.62 billion (8.9%) in the corresponding period of the previous year. On y-o-y basis, credit to the private sector from BFIs increased 5.4% in mid-November 2022.
