KATHMANDU: Year-on-year (y-o-y) consumer price inflation stood at 5.41 percent in mid-January 2025, compared to 5.26 percent a year ago, according to the Nepal Rastra Bank (NRB) report titled Current Macroeconomic and Financial Situation of Nepal.
The report is based on six months of data ending mid-January 2024/25.
Food and beverage inflation stood at 7.67 percent, while non-food and service inflation was 4.19 percent during the review month.
In the same period last year, the price indices of these groups had increased by 5.75 percent and 4.93 percent, respectively.
Under the food and beverage category, the y-o-y price index for vegetables increased by 28.52 percent, ghee and oil by 10.67 percent, pulses and legumes by 9.48 percent, and cereal grains and their products by 7.23 percent.
Conversely, the y-o-y price index for spices decreased by 3.12 percent.
In the non-food and services category, the y-o-y price index for miscellaneous goods and services increased by 9.35 percent, alcoholic drinks by 7.01 percent, clothing and footwear by 6.75 percent, and furnishings and household equipment by 5.29 percent.
During the review month, the y-o-y price index in rural areas increased by 5.68 percent, while in urban areas, it rose by 5.31 percent.
By province, the y-o-y consumer price inflation in mid-January 2025 was as follows: Koshi Province 6.73 percent, Madhesh Province 5.96 percent, Bagmati Province 5.14 percent, Gandaki Province 4.37 percent, Lumbini Province 4.83 percent, Karnali Province 4.60 percent, and Sudurpashchim Province 5.67 percent.
In the review month, the y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill, and Mountain regions surged to 5.03 percent, 5.60 percent, 5.41 percent, and 5.27 percent, respectively.
Wholesale Price Inflation (WPI)
The NRB report also noted that y-o-y wholesale price inflation stood at 4.01 percent in mid-January 2025, compared to 3.36 percent a year ago.
The y-o-y wholesale prices of consumption goods, intermediate goods, and capital goods increased by 6.92 percent, 2.55 percent, and 3.14 percent, respectively.
The y-o-y wholesale price of construction materials decreased by 4.28 percent in the review month.
The y-o-y salary and wage index increased by 2.85 percent in the second quarter of fiscal year 2024/25, compared to 5.56 percent a year ago.
By province, the increase in the y-o-y salary and wage index during the review quarter was as follows: Koshi Province 1.30 percent, Madhesh Province 4.26 percent, Bagmati Province 1.73 percent, Gandaki Province 2.70 percent, Lumbini Province 3.37 percent, Karnali Province 3.08 percent, and Sudurpashchim Province 7.59 percent.
Merchandise Trade
During the first six months of 2024/25, merchandise exports increased by 31.8 percent to Rs. 98.79 billion, compared to a decrease of 7.2 percent in the same period the previous year.
Exports to India, China, and other countries increased by 46.1 percent, 19.7 percent, and 1.0 percent, respectively.
Exports of soybean oil, tea, polyester yarn and thread, particle board, and cardamom, among others, increased, while exports of palm oil, zinc sheets, ginger, readymade garments, and herbs decreased during the review period.
During the same period, merchandise imports increased by 7.1 percent to Rs. 822.37 billion, compared to a decline of 3.1 percent a year ago.
Imports from India, China, and other countries increased by 5.9 percent, 8.9 percent, and 9.0 percent, respectively.
Imports of crude soybean oil, rice/paddy, transport equipment, vehicles and other vehicle spare parts, sponge iron, and edible oil, among others, increased, while imports of petroleum products, crude palm oil, gold, chemical fertilizers, and peas decreased during the review period.
By customs point, exports from Bhairahawa, Biratnagar, Birgunj, Dry Port, Kailali, Krishnanagar, Mechi, Nepalgunj, and Rasuwa customs offices increased, whereas exports from all other major customs points decreased in the review period.
On the import side, imports from Bhairahawa, Biratnagar, Birgunj, Jaleshwor, Kailali, Kanchanpur, Krishnanagar, Mechi, Nepalgunj, Rasuwa, Tatopani, and Tribhuvan Airport customs offices increased, while imports from Dry Port customs points decreased.
The total trade deficit increased by 4.4 percent to Rs. 723.58 billion during the first six months of 2024/25.
This had decreased by 2.6 percent in the corresponding period of the previous year.
The export-import ratio increased to 12.0 percent in the review period, up from 9.8 percent in the corresponding period of the previous year.
During the first six months of 2024/25, merchandise imports from India paid in convertible foreign currency amounted to Rs. 88.56 billion, compared to Rs. 76.25 billion in the same period of the previous year.
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