Kathmandu. In the first month of the current fiscal year, the rate of inflation has come down sharply.

According to Nepal Rastra Bank, the year-on-year consumer price inflation stood at 1.68 percent in July. It was 4.09 percent in the corresponding month of the previous year. In the first six months of the current fiscal year, the inflation of food and beverages group stood at 2.28 percent and that of non-food and service group was 3.95 percent. In the same period of the previous year, inflation in these groups was 6.17 percent and 2.94 percent, respectively.

The Consumer Price Index of Ghee and Oil sub-group under the food and beverage group increased by 10.97 percent, non-alcoholic beverages by 4.64 percent and fruits by 3.01 percent in mid-July. In the vegetable sub-group, Consumer Price Index decreased by 18.56 percent, Marmasala by 4.81 percent and Fish and Meat by 2.41 percent.

Likewise, consumer price index of miscellaneous goods and services sub-group increased by 10.60 percent, education by 7.67 percent, clothing and footwear by 6.84 percent, furnishing and household appliances by 5.06 percent and tobacco products by 4.68 percent. The Consumer Price Index of Insurance and Financial Services (BFS) decreased by 0.22 percent in the review period.

In the review month, the year-on-year consumer price index of the rural areas increased by 1.65 percent and the urban areas by 1.70 percent.

Year-on-year consumer price inflation in the review month stood at 2.84 percent, Madhesh 1.86 percent, Bagmati Province 1.67 percent, Gandaki Province 1.03 percent, Lumbini Province 1.35 percent, Karnali Province 1.79 percent and Sudurpaschim Province 0.31 percent.

Year-on-year consumer price inflation in Kathmandu Valley stood at 2.26 percent, 1.33 percent for the Terai, 1.56 percent for the hilly region and 2.59 percent for the mountainous region.