Inflation increases two-fold in tenth month of running fiscal compared to last year

KATHMANDU: The consumer price inflation (CPI) more than doubled in the tenth month of FY 2021/22 compared to last year.

According to macroeconomic and financial report released on Friday by Nepal Rastra Bank, the annual consumer inflation of the country remained 7.87 percent from mid-April to mid-May against 6.65 percent in the corresponding period of the previous year.

Food and beverage inflation stood at 7.13 percent whereas non-food and service inflation stood at 8.45 percent in the review month.

The average monthly year-on-year inflation for 10 months was recorded 5.84 percent, according to the report.

The prices of ghee & oil, fruits, milk products & eggs, pulses & legumes, and tobacco products sub-categories increased by 24.86 percent, 12.61 percent, 11.30 percent, 10.53 and 9.70 percent respectively on an annual basis.

On the non-food and services category, the prices of transportation, education, and recreation & culture sub-categories rose by 21.81 percent, 11.64 percent and 8.21 percent respectively.

In the review month, the Kathmandu Valley, Terai, Hill and Mountain witnessed inflation of 7.39 percent, 8.15 percent, 7.89 percent and 8.21 percent respectively.

Inflation in these regions was 3.62 percent, 3.51 percent, 4.14 percent and 1.33 percent respectively a year ago.