Price Increase Exceeds 5 Percent in Fruits and Transportation in Nepali Month Vaisakh

According to Nepal Rastra Bank, the annual point-to-point consumer inflation rate, which was 2.77 percent in Vaisakh last year, has risen to 5.04 percent in the same period of the current fiscal year. During this review period, inflation in the food and beverage group reached 4.63 percent, while the non-food and service group recorded a price increase of 5.26 percent. Consumer inflation in Nepal stands at 5.04 percent, whereas neighboring India has kept inflation limited to 3.48 percent. (26th Jestha, Kathmandu)

Annual point-to-point consumer inflation, limited to 2.77 percent in Vaisakh last year, has nearly doubled to 5.04 percent in the same period this fiscal year. This marked increase in the inflation rate is evident from the current economic and financial status of 2083 Vaisakh released by Nepal Rastra Bank. Inflation in the food and beverage group stands at 4.63 percent, whereas the non-food and services group has reached 5.26 percent.

High price hikes in fruits and transportation categories were notable. Within the food group, fruit prices surged sharply by 18.60 percent. Similarly, the prices of ghee and oil rose by 13.99 percent, vegetables by 5.40 percent, and fish and meat by 4.16 percent. On the positive side, prices for lentils and pulses fell by 1.67 percent, and spices by 0.65 percent. In the non-food and service group, the price of miscellaneous goods and services increased by 19.90 percent, while transportation fares rose by 15.30 percent.

Analyzing inflation geographically, the Terai region experienced the highest inflation at 5.59 percent in Vaisakh. Kathmandu Valley recorded 4.90 percent, Hills 4.73 percent, and the Mountain region 3.73 percent inflation. Furthermore, urban areas had higher inflation than rural areas, with rural inflation at 4.35 percent compared to 5.29 percent in urban areas. By province, Koshi had the highest inflation at 5.64 percent while Bagmati had the lowest at 4.55 percent, according to data from Nepal Rastra Bank.