KATMANDU, September 23: The country’s consumer price inflation climbed to 4.35 percent in the first month of the current fiscal year, due to higher prices for ghee and oil in particular .
According to “Nepal’s Current Macroeconomic and Financial Situation” released Thursday by Nepal Rastra Bank (NRB), the country’s inflation rate in mid-July and mid-August was 0.86 percentage points higher than. rising prices over the same period last year. year. Inflation for food and beverages stood at 3.86 percent while inflation for non-food and services stood at 4.74 percent during the review period.
NRB records show that the annual price of ghee and oil, soft drinks, tobacco products and transportation subcategories increased by 29.07 percent, 10.51 percent, respectively, 10 , 12 percent and 9.43 percent. Citing the increase in commodity prices, traders increased edible oil prices by around 65% last year, which however is still in an upward trend in the domestic market.
During the review month, inflation in the hilly region jumped 5.63%, more than double the figure for the first month of 2020/21. Likewise, prices in the Kathmandu Valley, Terai and the mountains also increased by 3.70%, 4.11% and 3.58%, respectively.
Consumer inflation in the last fiscal year stood at 3.6%, which was probably the smallest average annual price increase in the past two decades. The government through the budget estimated the country’s annual inflation at 6.5% for 2021/22.