Consumer price inflation declines to 3.5 pc in mid-Jul: NRB report

KATHMANDU: The year-on-year (y-o-y) consumer price inflation stood at 3.57% in mid-July 2024, compared to 7.44% a year ago, according to the macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on Sunday.

The annual average consumer price inflation for FY 2023/24 was 5.44%, down from 7.74% the previous year.

In the food and beverage category, the annual average consumer price index increased as follows: spices subcategory by 26.40%, pulses and legumes by 9.96%, sugar and sugar products by 9.87%, cereal grains and their products by 9.85%, and vegetables by 8.29%. However, the annual average consumer price index for the ghee and oil subcategory decreased by 10.99%, as reported by the central bank based on annual data from 2023/24.

Similarly, in the non-food and services category, the annual average consumer price index saw the following changes: miscellaneous goods and services subcategory increased by 11.38%, recreation and culture by 10.96%, education by 7.73%, furnishing and household equipment by 4.75%, and clothes and footwear by 4.56%. However, the annual average consumer price index for the transportation subcategory decreased by 0.82%.

Regarding food and beverage category inflation, the annual average stood at 6.47% in FY 2023/24, slightly lower than the 6.62% recorded a year ago. Meanwhile, the y-o-y food and beverage category inflation was 4.10% in mid-July 2024, compared to 7.38% a year ago.

For the non-food and services category, the annual average inflation rate was 4.64% in FY 2023/24, down from 8.62% the previous year. The y-o-y non-food and services category inflation stood at 3.15% in mid-July 2024, compared to 7.48% a year ago.