Inflation increases by 3.6 percent

KATHMANDU, AUGUST 18: The annual consumer price inflation last year rose by 3.6 percent to hit 6.32 percent compared to the previous fiscal year.

It was revealed by the annual report on ‘Current Macroeconomic and Financial Situation of Nepal’ unveiled by Nepal Rastra Bank (NRB) recently. During the review period, the annual average of food and beverage inflation stood at 5.69 percent, up by .69 percent compared to 2020/21. Similarly, the annual average of non-food and service inflation increased by 2.51 percent to stand at 6.83 percent.

Under the food category, the prices of ghee and oil increased by 26.13 percent and pulses and legumes by 9.92 percent. Likewise, under the non-food and services category, the prices of transportation grew by 15.82 percent, education by 8.78 percent  and furnishing and household equipment by 7.09 percent.

In a similar way, the year-on-year inflation in one month between mid-June and mid-July of the last fiscal year stood at 8.08 percent while the same of the previous fiscal year had been recorded at a just 4.19 percent 

The higher inflation rate during the review period is attributed to the global rise in fuel and food prices, disruption in supply chain and depreciation of Nepalese currency vis-a-vis the US dollar.