Consumer inflation in Nepal dropped to 3.85% during the period from mid-August to mid-September (Bhadra) of the fiscal year 2024/25, according to a report released by Nepal Rastra Bank on the country’s current macroeconomic and financial situation. This marks a significant decline from the 8.19% recorded in the same period last fiscal year.
The inflation rate for the food and beverage sector was 5.03% during this period, a notable reduction compared to 9.77% in the previous year. Non-food inflation also decreased to 7.19% from higher levels last year. Within the food and beverage category, the price index for pulses and legumes saw the largest increase at 10.80%, followed by vegetables at 9.84%, other food items at 9.30%, and fruits at 4.94%. Conversely, the spices sub-group saw a price drop, with inflation falling to 2.69%.
In the non-food and service sector, inflation for miscellaneous goods and services rose by 8.71%, while prices for alcoholic beverages increased by 6.76%, clothing and footwear by 6.08%, and home appliances by 4.88%. The price index for insurance and financial services remained unchanged.
Rural areas experienced a 4.04% rise in consumer inflation, while urban areas saw a 3.78% increase. Regionally, Koshi Province recorded the highest inflation rate at 4.66%, while Bagmati Province had the lowest at 3.29%. In the Kathmandu Valley, inflation dropped to 3.49%, a sharp decline from 9.83% in the same period last year.
Additionally, the wholesale inflation rate for this period stands at 2.75%, down from 4.78% in the previous year. The wholesale inflation for construction materials also saw a notable decrease, falling by 4.22%.