KATHMANDU: Despite the government’s aspiration to cap inflation at 6.5 percent through its budget and monetary policies, Nepal has been grappling with a considerable upswing in prices since the start of the month.
Data released by the Nepal Rastra Bank reveals that the annual point consumer inflation reached 8.19 percent in August, up from 8.64 percent during the same period last year.
Particularly concerning is the soaring inflation in the food and beverages category, contributing to rising kitchen expenses. This group has witnessed a substantial inflation rate of 9.74 percent, in stark contrast to the comparatively lower 6.99 percent inflation in the non-food and services category. Within the food and beverages group, prices of spice commodities have witnessed a staggering surge of 45.46 percent.
Additional noteworthy price hikes include sugar and sugar products at 17.86 percent, vegetables at 14.51 percent, food and food products at 13.38 percent, dairy products and eggs at 12.60 percent, and restaurants and hotels at 10.97 percent. The data also indicates a decline of 13.08 percent in the price of ghee and oil sub-group.
Regionally, the Himalayan region experienced the highest price increase at 11.32 percent, followed by the Kathmandu Valley at 9.83 percent, the Hills at 8.09 percent, and the Terai at 7.03 percent.
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