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Nepal’s consumer price inflation remains at 7.26%: NRB data

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KATHMANDU: The consumer price inflation remained at 7.26% in mid-January 2023 compared to 5.65% a year ago, according to the Current Macroeconomic and Financial Situation of Nepal (based on six months’ data ) released by Nepal Rastra Bank. According to data, food and beverage inflation stood at 5.62% while non-food and service inflation rose to 8.57% in the first six months in of current fiscal year 2022/23. Likewsie, the merchandise imports decreased 20.7% to Rs 792.67 billion against an increase of 51.1% a year ago. Destination-wise, imports from India, China and other countries decreased 19.4%, 24.6%, and 21.4% respectively. Similarly, themerchandise exports decreased 32.0% to Rs 80.81 billion against an increase of 95.5% in the same period of the previous FY 2021/22. Destination-wise, exports to India and China decreased 40.1% and 25.2% respectively while exports to other countries increased 3.6%. Remittance inflows increased 24.3% to Rs 585.08 billion in the review period against a decrease of 5.0% in the same period of previous FY. In US Dollar terms, remittance inflows increased 13.9% to 4.50 billion against a decrease of 5.7% in the same period of last FY. Balance of Payments (BOP) remained at a surplus of Rs 97.10 billion in the review period compared to a deficit of Rs 241.23 billion in the same period of the previous FY. In US dollar terms, the BOP remained at a surplus of 734.4 million against a deficit of 2.02 billion compared to last year. Gross foreign exchange reserves increased 10.0% to Rs 1337.29 billion in mid-January 2023 from Rs 1215.80 billion in mid-July 2022. In US dollar terms, the gross foreign exchange reserves increased 8.0% to 10.30 billion in mid-January 2023 from 9.54 billion in mid-July 2022. The total expenditure of the federal government according to data of Financial Comptroller General Office (FCGO), Ministry of Finance, stood at Rs 576.35 billion. The recurrent expenditure, capital expenditure and financial management expenditure amounted to Rs 455.13 billion, Rs 53.46 billion and Rs 67.77 billion respectively in the review period. Broad money (M2) increased 3.6% in the review period compared to an increase of 2.8% in the corresponding period of the previous FY. On y-o-y basis, M2 expanded 7.7% in mid-January 2023. Deposits at banks and financial institutions (BFIs) increased Rs 215.14 billion (4.2%) in the review period compared to an increase of Rs 179.07 billion (3.8%) in the corresponding period of last year. On y-o-y basis, deposits at BFIs expanded 9.4% in mid-January 2023. Private sector credit from BFIs increased Rs 137.33 billion (3.0%) in the review period compared to an increase of Rs 492.63 billion (12.1%) in the corresponding period of previous year. On y-o-y basis, credit to the private sector from BFIs increased 4.0% in mid-January 2023. READ ALSO: