KATHMANDU, May 12: The consumer price inflation moderated to 3.39 percent last month as the prices of vegetable, spices and meat products dropped during the review period.
The Current Macroeconomic and Financial Situation Report of Nepal for the first nine months of FY 2024/25 show that the average price hike moderated by 0.36 percentage point as of mid-April, a decline from 3.75 percent in the previous month. The year-on-year inflation was down 1.25 percentage points, from 4.61 percent as of mid-April last year.
According to the NRB, food and beverage inflation stood at 2.45 percent whereas non-food and service inflation stood at 3.90 percent in the review month. During the same period in the previous year, the price indices of these groups increased 5.22 percent and 4.20 percent, respectively.
Consumer price inflation moderates to 3.75 percent
Under the food and beverage category, the year-on-year price index of ghee and oil sub-category increased 11.63 percent, fruit 9.07 percent, pulses and legumes 6.58 percent and non-alcoholic drinks 5.16 percent. On the other hand, the price index of vegetable sub-category decreased 5.24 percent, while those of spices dropped 2.32 percent and meat and fish declined 0.89 percent.
Under the non-food and services category, the average price of miscellaneous goods and services increased 8.69 percent, clothes and footwear 7.01 percent, alcoholic drinks 6.07 percent, furnishing and household equipment 5.59 percent and tobacco products 4.83 percent.
Consumer price inflation in Koshi Province stood at 4.91 percent, the largest of all, followed by Madhesh Province at 3.51 percent and Sudurpaschim Province at 3.51 percent. Likewise, Karnali Province and Lumbini Province each had inflation of 3.11 percent, Gandaki Province (2.83 percent) and Bagmati Province (2.80 percent).
Based on region, the mountain region witnessed the highest inflation of 4.47 percent. In the hill region, inflation stood at 3.46 percent, while in the Terai and the Kathmandu Valley, the inflation rates were 3.31 percent and 2.95 percent, respectively.
The government has set a target to maintain consumer price inflation within 5.5 percent for FY 2024/25. The recent trend of inflation shows that the government is likely to meet its annual target of inflation this time.
