Year-on-year consumer price inflation at 5.41 percent: NRB Report

Kathmandu, Feb 3: The y-o-y consumer price inflation stood at 5.41 per cent in mid-January 2025 compared to 5.26 per cent a year ago, the Nepal Rastra Bank (NRB) stated in its report, 'Current Macroeconomic and Financial Situation of Nepal.' The report is based on six months data ending Mid-January, 2024/25.    

The food and beverage inflation stood at 7.67 percent whereas non-food and service inflation stood at 4.19 percent in the review month. During the same period in the previous year, the price indices of these groups had increased by 5.75 percent and 4.93 percent respectively.    

Under the food and beverage category, y-o-y price index of vegetable sub-category increased 28.52 percent, ghee & oil 10.67 percent, pulses and legumes 9.48 percent and cereal grains & their products 7.23 percent while y-o-y price index of spices sub-category decreased 3.12 percent.    

Under the non-food and services category, y-o-y price index of miscellaneous goods & services sub-category increased 9.35 percent, alcoholic drinks 7.01 percent, clothes and footwear 6.75 percent and furnishing & household equipment 5.29 percent.    

During the review month, y-o-y price index in rural areas increased by 5.68 percent, while in urban areas, it rose by 5.31 percent. Based on provinces, in the review month, y-o-y consumer price inflation in Koshi Province is 6.73 percent, Madhesh Province 5.96 percent, Bagmati Province 5.14 percent, Gandaki Province 4.37 percent, Lumbini Province 4.83 percent, Karnali Province 4.60 percent, and Sudurpashchim Province 5.67 percent.    

In the review month, y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region surged to 5.03 percent, 5.60 percent, 5.41 percent and 5.27 percent respectively.    
Wholesale Price Inflation (WPI)    

The NRB report stated that y-o-y wholesale price inflation stood at 4.01 percent in mid-January 2025 compared to 3.36 percent a year ago. The y-o-y wholesale price of consumption goods, intermediate goods and capital goods increased 6.92 percent, 2.55 percent and 3.14 percent respectively. The y-o-y wholesale price of construction material decreased by 4.28 percent in the review month.    
The y-o-y salary and wage index increased 2.85 percent in second quarter of fiscal year 2024-25 compared to 5.56 percent a year ago.    

Based on provinces, in the review quarter, the increase in y-o-y salary and wage index in Koshi Province is 1.30 percent, Madhesh Province 4.26 percent, Bagmati Province 1.73 percent, Gandaki Province 2.70 percent, Lumbini Province 3.37 percent, Karnali Province 3.08 percent, and Sudurpashchim Province 7.59 percent.    
Merchandise Trade    

During the six months of 2024/25, merchandise exports increased 31.8 percent to Rs.98.79 billion against a decrease of 7.2 percent in the same period of the previous year.    
Destination-wise, exports to India, China and other countries increased 46.1 percent, 19.7 percent and 1.0 percent respectively.    

Exports of soyabean oil, tea, polyster yarn and thread, particle board, cardamom, among others increased whereas exports of palm oil, zinc sheet, ginger, readymade garments, herbs, among others decreased in the review period.    

During the six months of 2024/25, merchandise imports increased 7.1 percent to Rs.822.37 billion against a decline of 3.1 percent a year ago. Destination-wise, imports from India, China and other countries increased 5.9 percent, 8.9 percent and 9.0 percent respectively.    

Imports of crude soyabean oil, rice/paddy, transport equipment, vehicle and other vehicle spare parts, sponge iron, edible oil, among others increased whereas imports of petroleum products, crude palm oil, gold, chemical fertilizer, peas, among others decreased in the review period.    

Based on customs points, exports from Bhairahawa, Biratnagar, Birgunj, Dry port, Kailali, Krishnanagar, Mechi, Nepalgunj, and Rasuwa customs offices increased whereas exports from all other major customs points decreased in the review period.    

On the import side, imports from Bhairahawa, Biratnagar, Birgunj, Jaleshwor, Kailali, Kanchanpur, Krishnanagar, Mechi, Nepalgunj, Rasuwa, Tatopani and Tribhuwan Airport customs offices increased whereas imports from Dry port customs points decreased in the review period.    

Total trade deficit increased 4.4 percent to Rs.723.58 billion during the six months of 2024/25. Such a deficit had decreased 2.6 percent in the corresponding period of the previous year.    
The export-import ratio increased to 12.0 percent in the review period from 9.8 percent in the corresponding period of the previous year.    

During the six months of 2024/25, merchandise imports from India by paying convertible foreign currency amounted Rs.88.56 billion. Such amount was Rs.76.25 billion in the same period of the previous year.  (RSS)