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Consumer inflation rises 4.28 percentage points in a year

Kathmandu. In the last one year, the prices of daily consumables and services have increased sharply. Nepal’s year-on-year consumer price inflation increased by 4.28 percentage points to 5.96 percent. In the previous year, it was 1.68 percent.

According to the data of the Nepal Rastra Bank, the inflation of the food and beverages group has increased to 6.77 percent in July 2083. The inflation of this group was negative by 2.28 percent in the same period of the previous year. Inflation in the non-food and service group has also increased to 5.52 percent. In the previous year, such inflation was 3.95 percent.TAG_OPEN_div_36

The prices of daily food items have increased significantly. The price of ghee and oil has increased by 15.62 percent in the review month. Similarly, the price of fruits has increased by 15.39 percent, fish and meat by 8.65 percent, vegetables by 6.90 percent and spices by 4.80 percent.

The non-food and service group saw the highest increase in transportation expenses. The transport price index increased by 13.17 percent. The price of alcoholic beverages increased by 7.20 percent, clothing and footwear by 5.52 percent and tobacco by 4.97 percent.TAG_OPEN_div_32

TAG_OPEN_div_30 The rate of inflation also varies from region to region. During the review period, the annual Consumer Price Index (CPI) increased by 6.18 percent in rural areas and by 5.88 percent in urban areas.

Province-wise, Madhes Province has the highest inflation rate of 6.94 percent. The Sudurpaschim Province has the lowest inflation at 4.61 percent. Among the geographical areas, inflation is 6.64 percent in the Terai, 5.95 percent in the hills, 5.10 percent in the mountains and 4.81 percent in the Kathmandu Valley.TAG_OPEN_div_28

Similarly, there has been a significant increase in wholesale prices along with consumer prices. Year-on-year wholesale inflation has reached 8.27 percent in July 2008. In the same month of the previous year, it was only 2.37 percent. Thus, wholesale inflation has increased by 5.90 percentage points in a year.

During the review period, the wholesale inflation of intermediate goods was 13.62 per cent and that of capital goods was 6.45 per cent. Wholesale inflation in construction goods was 4.89 per cent. Wholesale inflation in consumer goods was negative 0.05 per cent.TAG_OPEN_div_24

In August 2083, Nepal’s annual point consumer inflation was 5.96 percent, while in August 2026, it was 4.82 percent in India. On this basis, consumer price inflation in Nepal has increased by 1.14 percentage points compared to India.

Overall, Nepal’s consumer price inflation has now reached 5.96 percent from 1.68 percent a year ago. The increase in the prices of food items such as ghee and oil, fruits, fish and meat, vegetables, as well as transport and other services, seems to have put additional pressure on the daily expenses of the common consumers.

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