Inflation hits 8.56% breaking records of last five years

By TRN Online, Kathmandu, July 12: The consumer price index (CPI) based inflation has hit 8.56 per cent in the period of 11 months of the current FY.

The Nepal Rastra Bank (NRB) report on the current Macroeconomic and Financial Situation of the last 11 months of the current FY showed that consumer price inflation stood at 8.56 per cent, far higher in comparison to the 4.19 per cent recorded a year ago.

The CPI-based inflation in the period of 11 months overtook the annual target of 6.50 per cent set by the monetary policy of 2021/22.

The inflation had been contained at an average of 4.59 per cent in the period of 2016/17 to 2020/21 with the largest hike of 6.15 per cent in 2019/20.

The report revealed that recent inflation triggered around 9.44 per cent specifically by the non-food and service inflation followed by 7.43 per cent of food and beverage inflation.  

The huge upswing in the price of transportation, education, household equipment, recreation, housing, and utility spurred the inflation by 25.79 per cent, 11.64 per cent, 8.30 per cent, 8.21 per cent and 7.84 per cent respectively.

Besides, prices of ghee & oil, milk and eggs, tobacco, alcoholic drink and pulses & legumes hiked by 22.60 per cent, 11.22 per cent, 9.70 per cent, 9.68 per cent and 9.13 per cent respectively spurred the food inflation.

Meanwhile, the average inflation for the last 11 months stood at 6.09 per cent.