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Consumer price inflation remains at 8.64 pc: NRB

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KATHMANDU: The y-o-y consumer price inflation remained at 8.64% in the second month of 2022/23 compared to 3.49% a year ago, according to the Current Macroeconomic and Financial Situation of Nepal (based on two months’ data ending mid-September, 2022/23) released by Nepal Rastra Bank. Food and beverage inflation stood at 8.17% while non-food and service inflation stood at 9.02% in the review month. Under the food and beverage category, the prices of fruit, ghee and oil, restaurant and hotel, alcoholic drinks and vegetable sub-categories increased by 17.29%, 14.53%, 12.30%, 10.24 and 9.94% respectively on y-o-y basis. Likewise, merchandise exports decreased 34.9% to Rs 28.68 billion against an increase of 115.4% in the same period of the previous year. Destination-wise, exports to India and China decreased 45.2% and 21.6% respectively whereas exports to other countries increased 13.2%. Exports of zinc sheets, woollen carpets, particle board, readymade garments, medicine (ayurvedic), among others, increased whereas exports of soyabean oil, palm oil, oil cakes, cardamom, toothpaste, among others, decreased in the review period. During the two months of 2022/23, merchandise imports decreased 13.0% to Rs 273.60 billion against an increase of 75.9% a year ago. Destination-wise, imports from India, China and other countries decreased 9.5%, 13.3%, and 20.7% respectively. Imports of petroleum products, chemical fertilizer, sponge iron, medicine, aircraft & spareparts, among others, increased whereas imports of transport equipment & parts, silver, crude soyabean oil, hot rolled sheet in coil, M.S. billet, among others, decreased in the review period. Based on customs points, exports from Dry Port, Jaleshwor, Kailali, Krishnanagar, Mechi and Tribhuwan Airport Customs Offices increased whereas exports from all the other major customs points decreased in the review period. On the import side, imports from Dry Port, Jaleshwor, Krishnagar and Tatopani Customs Offices increased whereas imports from all the other major customs points decreased in the review period. The total trade deficit decreased 9.4% to Rs 244.92 billion during the two months of 2022/23. Such a deficit had increased 70.8% in the corresponding period of the previous year. The export import ratio decreased to 10.5% in the review period from 14.0% in the corresponding period of the previous year. During the two months of 2022/23, merchandise imports from India by paying convertible foreign currency amounted to Rs 26.23 billion. Such an amount was Rs 36.27 billion in the same period of the previous year. Balance of Payments (BOP) remained at a deficit of Rs 23.68 billion in the review period compared to a deficit of Rs 94.80 billion in the same period of the previous year. In US Dollar terms, the BOP remained at a deficit of 185.90 million in the review period compared to a deficit of 800.93 million in the same period of the previous year. Gross foreign exchange reserves decreased 2.2% to Rs 1189.16 billion in mid-September 2022 from Rs 1215.80 billion in mid-July 2022. In US dollar terms, the gross foreign exchange reserves decreased 2.0% to 9.35 billion in mid-September 2022 from 9.54 billion in mid-July 2022. During the two months of 2022/23, the total expenditure of the federal government according to data from Financial Comptroller General Office (FCGO), Ministry of Finance, stood at Rs 134.34 billion. The recurrent expenditure, capital expenditure and financial expenditure amounted to Rs 108.73 billion, Rs 5.86 billion and Rs 19.75 billion respectively in the review period. In the review period, revenue mobilisation (including the amount to be transferred to provincial and local governments) stood at Rs 143.81 billion. The tax revenue and non-tax revenue amounted Rs 130.70 billion and Rs 13.11 billion respectively in the review period. Broad money (M2) decreased 1.1% in the review period in contrast to an increase of 0.2% in the corresponding period of the previous year. On y-o-y basis, M2 expanded 5.5% in mid-September 2022. Deposits at banks and financial institutions (BFIs) decreased 0.9% in the review period compared to an increase of 0.7% in the corresponding period of the previous year. On y-o-y basis, deposits at BFIs expanded 7.4% in mid-September 2022. The share of institutional deposits in the total deposits of BFIs stands at 37.2% in mid-September 2022. Such a share was 40.5% in mid-September 2021. Private sector credit from BFIs increased 0.5% in the review period compared to an increase of 5.7% in the corresponding period of previous year. On y-o-y basis, credit to the private sector from BFIs increased 7.5% in mid-September 2022. READ ALSO: