Inflation falls by more than half compared to last year

KATHMANDU: Data from Nepal Rastra Bank (NRB) indicates that inflation in Nepal has fallen by more than half in Asoj (mid-September to mid-October) of the current fiscal year compared to the same month last year.

According to the central bank’s report on the country’s current economic and financial situation, annual consumer inflation stood at 1.47 percent in the period of the current fiscal year, down from 4.28 percent in the same period of the previous fiscal year.

Breaking it down by category, inflation in the food and beverage group was negative 2.54 percent, while inflation in the non-food and services group was 3.80 percent. In comparison, these groups recorded 7.20 percent and 3.49 percent inflation, respectively, in the same period last year.

The average inflation for the first quarter of fiscal year 2082/83 (2025/26) was 1.67 percent, a significant decline from 4.26 percent during the same period last year.

Within the food and beverage group, the annual consumer price index (CPI) for ghee and oil rose by 7.75 percent, non-alcoholic beverages by 3.71 percent, and fish and meat by 3.15 percent. However, vegetables saw a sharp decline of 15.63 percent, spices fell 7.82 percent, and pulses and legumes dropped 4.41 percent.

In the non-food and services group, the CPI for miscellaneous goods and services increased by 15.51 percent, education by 7.67 percent, clothing and footwear by 6.29 percent, tobacco products by 4.84 percent, and furnishings and household appliances by 4.55 percent. Conversely, the insurance and financial services sub-group declined slightly by 0.23 percent.

Rural areas recorded an annual CPI increase of 1.29 percent, while urban areas rose by 1.53 percent during the review month.

Provincial-level data showed inflation as follows: Koshi Province 2.33 percent, Madhesh 1.20 percent, Bagmati 1.13 percent, Gandaki 1.16 percent, Lumbini 1.89 percent, Karnali 1.91 percent, and Sudurpaschim 0.69 percent.

Regionally, the annual CPI in Kathmandu Valley was 1.43 percent, the Terai 1.29 percent, the Hills 1.50 percent, and the Himalayas 2.33 percent.