Inflation marginally increases to 7.52 percent during mid-July and mid-August compared to the previous month

Published On: September 17, 2023 06:23 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Sept 17: The consumer price inflation between mid-July and mid-August this year stood at 7.52 percent, slightly higher than the previous month.

According to the ‘Current Macroeconomic and Financial Situation Report of Nepal’ unveiled by Nepal Rastra Bank (NRB) on Sunday, the country’s year-on-year inflation as of mid-August was 7.52 percent compared to 8.26 percent a year ago. During the period, the price index was affected largely by the prices of spices under the food and beverage category.

Although the year-on-year comparison of inflation seems to have relieved the consumers with lowered market prices, the consumer price inflation in the review month was slightly higher compared to the previous month (mid-June and mid-July). During the period, inflation was 7.44 percent, which increased by 0.8 percentage points in the following month.

The NRB report shows food and beverage inflation stood at 8.95 percent whereas non-food and service inflation stood at 6.42 percent in the review month. Under the food and beverage category, price index of spices sub-category increased 45.56 percent, cereal grains and their products 13.20 percent, milk products and eggs 12.19 percent, restaurant and hotel 11.05 percent and vegetable 10.80 percent. The year-on-year price index of ghee and oil sub-category decreased 15.13 percent.

Under the non-food and services category, the price index of recreation and culture sub-category increased 15.55 percent, education 9.10 percent, housing and utilities 6.93 percent and furnishing and household equipment 6.79 percent. The price index of transportation sub-category however declined 0.81 percent.

In the review month, the consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region surged to 8.50 percent, 6.70 percent, 7.50 percent and 11.46 percent, respectively. Inflations in these regions were 7.39 percent, 8.72 percent, 8.64 percent and 6.64 percent respectively a year ago.