A survey conducted by Nepal Rastra Bank (NRB) shows that 95.7% of respondents expected price level to rise over the next one year while 86.6% of respondents expected price level to increase in next three months.
NRB has released the results of the Inflation Expectations Survey (IES) for the first quarter of FY 2022/23. The survey was conducted from October 9 to 15, 2022 among individual respondents from 60 market areas of 57 cities through field interviews.
The results are based on responses from 2,040 individuals, with additional 899 individuals in this survey compared to the number of individuals included in the previous survey.
The share of respondents expecting price rise in the next three months has decreased from mid-July, 2022, while the share of respondents expecting price increases over the next one year has slightly increased.
The share of respondents expecting price increases in food and sub-group; non-food and services and its subgroup; and real estate (housing) during the next three months has decreased compared to that of mid-July, 2022.
The share of respondents expecting price increases in one year ahead across the entire food products, except for cereal grains, pulses, sugar and spices and non-food and services groups has decreased compared to mid-July, 2022.
Median inflation expectation for three months ahead and one year ahead has decreased compared to mid-July, 2022. Median inflation expectations for three months and one year ahead stand at 10.0% and 12.0% respectively, the NRB stated.
This shows that individuals expect inflation to decrease in the near term and slightly increase in the medium term. Nepal Rastra Bank’s tight monetary policy stance has played a crucial role in anchoring inflation expectations in the near and medium term.
