Consumer price inflation in the 2023/24 financial year is 5.44 percent – myRepublica

NRB: Prices for important food items rose by around 10 percent last year

KATHMANDU, August 18: Average consumer price inflation last year was 5.44 percent, down from 7.74 percent the previous year.

The decline in price pressure in fiscal year 2023-24 was mainly due to the decline in consumer prices of ghee and oil, and non-food items and services, including transportation. The report titled 'Current Macroeconomic and Financial Situation of Nepal' for annual data of fiscal year 2023-24 released by Nepal Rastra Bank (NRB) on Sunday shows that the price index for ghee and oil declined by 10.99 percent and that for transportation by 0.82 percent.

The largest price increase was observed in the spices subcategory. The price index for spices increased by 26.40 percent during the reporting period.

In the food and beverages category, the annual average consumer price index for pulses and legumes increased by 9.96 percent, for sugar and sugar products by 9.87 percent, for cereals and cereal products by 9.85 percent and for vegetables by 8.29 percent.

Similarly, in the “Non-food and services” category, the annual average consumer price index of the “Miscellaneous goods and services” subcategory increased by 11.38 percent, in the “Leisure and culture” category by 10.96 percent, in the “Education” category by 7.73 percent, in the “Furnishings and household appliances” category by 4.75 percent and in the “Clothing and footwear” subcategory by 4.56 percent.

Last year, average inflation in the food and beverages category was 6.47 percent, slightly lower than the previous year (6.62 percent). Inflation in the non-food and services category also declined largely during the reporting period, falling from 8.62 percent to 4.64 percent.

Regionally, the inflation rate has fallen in all regions of the country. The Terai region saw the sharpest decline in inflation, with the average market price falling from 8.00 percent to 4.82 percent.

Similarly, the inflation rate in Kathmandu Valley fell from 7.55 percent to 5.99 percent. In the hill region, it fell from 7.56 percent to 5.78 percent. In the hill region, inflation was 6.86 percent in fiscal year 2023-24, down from 7.12 percent in fiscal year 2022-23.