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Consumer price inflation remains at 7.38 pc: NRB data

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KATHMANDU: The y-o-y consumer price inflation remained at 7.38% in mid-December 2022 compared to 7.11% a year ago, according to the Current Macroeconomic and Financial Situation of Nepal (based on five months’ data ) released by Nepal Rastra Bank. Under the food and beverage category, y-o-y consumer price index of the restaurant and hotel sub-category increased 15.56%, tobacco products 11.81%, cereal grains & their products 9.39%, milk products & eggs 9.07%, and alcoholic drinks 8.84%. Under the non-food and services category, y-o-y consumer price index of the transportation sub-category increased 17.33%, health 11.22%, recreation & culture 8.76%, housing & utilities 8.29% and furnishing & household equipment 8.29%. During the five months of the current fiscal year 2022/23, merchandise imports decreased 20.7% to Rs 664.75 billion against an increase of 59.5% a year ago. Destination-wise, imports from India, China and other countries decreased 20.0%, 22.6%, and 21.4% respectively. Imports of petroleum products, sponge iron, gold, chemical fertiliser, aircraft spare parts, among others, increased while imports of transport equipment and parts, MS billet, silver, medicine, crude soyabean oil, among others, decreased. Likewise, merchandise exports decreased 34.6% to Rs 67.30 billion against an increase of 105.6% in the same period of the previous year. Destination-wise, exports to India and China decreased 43.7% and 35.9% respectively while exports to other countries increased 7.1%. Exports of zinc sheet, particle board, woollen carpets, cardamom, tea, among others, increased whereas exports of soyabean oil, palm oil, oil cakes, textiles, silverware and jewellery, among others, decreased. The total trade deficit decreased 18.8% to Rs 597.44 billion during the five months of current FY. Such a deficit had increased 54.7% in the corresponding period of the previous FY. The export-import ratio decreased to 10.1% in the review period from 12.3% in the corresponding period of the previous year. Remittance inflows increased 23.0% to Rs 480.50 billion in the review period against a decrease of 6.3% in the same period of the previous year. In US Dollar terms, remittance inflows increased 13.1% to 3.71 billion in the review period against a decrease of 6.8% in the same period of the previous year. Net transfer increased 21.6% to Rs 530.06 billion in the review period. Such a transfer had decreased 5.3% in the same period of the previous year. Balance of Payments (BOP) remained at a surplus of Rs 45.87 billion in the review period compared to a deficit of Rs 195.01 billion in the same period of the previous year. In US Dollar terms, the BOP remained at a surplus of 346.8 million in the review period against a deficit of 1.64 billion in the same period of the previous year. Gross foreign exchange reserves increased 6.3% to Rs 1292.56 billion in mid-December 2022 from Rs 1215.80 billion in mid-July 2022. In the US dollar terms, the gross foreign exchange reserves increased 3.0% to 9.82 billion in mid-December 2022 from 9.54 billion in mid-July 2022. During the five months of current FY, the total expenditure of the federal government according to data from Financial Comptroller General Office (FCGO), Ministry of Finance, stood at Rs 435.21 billion. The recurrent expenditure, capital expenditure and financial management expenditure amounted to Rs 354.26 billion, Rs 33.99 billion and Rs 46.96 billion respectively in the review period. The total revenue mobilisation of Federal Government (including the amount to be transferred to provincial and local governments) stood at Rs 326.89 billion. The tax revenue amounted to Rs 301.46 billion and non-tax revenue Rs 25.43 billion in the review period. Broad money (M2) increased 1.9% in the review period compared to an increase of 1.3% in the corresponding period of the previous year. On y-o-y basis, M2 expanded 7.4% in mid-December 2022. Deposits at banks and financial institutions (BFIs) increased by Rs 111.15 billion (2.2%) in the review period compared to an increase of Rs 78.44 billion (1.7%) in the corresponding period of the previous year. On y-o-y basis, deposits at BFIs expanded 9.5% in mid-December 2022. Private sector credit from BFIs increased Rs 73.30 billion (1.6%) in the review period compared to an increase of Rs 423.13 billion (10.4%) in the corresponding period of the previous year. On y-o-y basis, credit to the private sector from BFIs increased 4.1% in mid-December 2022. READ ALSO: