Consumer price inflation drops to 3.85 pc in mid-Sep: NRB

KATHMANDU: The year-on-year (y-o-y) consumer price inflation stood at 3.85% in mid-September 2024, a significant drop from 8.19% a year earlier, according to the macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on Tuesday.

In the review month, food and beverage inflation was recorded at 5.03%, while non-food and service inflation stood at 3.19%. This is a substantial decrease compared to the same period last year, when these indices rose by 9.77% and 7.19%, respectively.

Within the food and beverage category, the y-o-y price index for pulse and legumes increased by 10.80%, vegetables by 9.84%, cereal grains and their products by 9.34%, and fruit by 4.94%. Conversely, the y-o-y price index for spices decreased by 2.69%.

In the non-food and services category, the y-o-y price index for miscellaneous goods and services rose by 8.71%, alcoholic drinks by 6.76%, clothes and footwear by 6.08%, and furnishing and household equipment by 4.88%. The y-o-y price index for insurance and financial services remained unchanged.

The report also highlighted regional disparities: y-o-y price index in rural areas increased by 4.04%, while in urban areas, it rose by 3.78%. By province, y-o-y consumer price inflation was highest in Sudurpashchim Province at 5.90%, followed by Koshi Province at 4.66%, Madhes Province at 3.82%, Lumbini Province at 3.53%, Karnali Province at 3.56%, Gandaki Province at 3.50%, and Bagmati Province at 3.29%.

In the Kathmandu Valley, Tarai, Hill and Mountain regions, y-o-y consumer price inflation surged to 3.49%, 4.09%, 3.61%, and 4.19%, respectively. These figures represent a significant decrease from the previous year, when inflation in these regions was 9.83%, 7.03%, 8.09%, and 11.32%, respectively.