Inflation down to 2.8 per cent

By A Staff Reporter,Kathmandu, June 11: The consumer price inflation witnessed a decline in the first 10 months of the current fiscal year.

According to current macroeconomic and financial situation report made public by the Nepal Rastra Bank (NRB), the y-o-y consumer price inflation stood at 2.77 per cent in mid-May 2025 compared to 4.40 per cent a year ago. 

Food and beverage inflation stood at 1.52 per cent whereas non-food and service inflation stood at 3.45 per cent in the review month. 

During the same period in the previous year, the price indices of these groups had increased by 6.41 per cent and 3.09 per cent, respectively.

Under the food and beverage category, y-o-y price index of ghee and oil sub-category increased by 11.08 per cent, fruit by 6.15 per cent, pulses and legumes by 5.17 per cent and non-alcoholic drinks by 4.70 per cent.

However, y-o-y price index of vegetable sub-category decreased by 8.11 per cent, spices by 2.20 per cent and meat and fish by 0.48 per cent during the review months.

Under the non-food and services category, y-o-y price index of miscellaneous goods and services sub-category increased by 9.04 per cent, education by 5.88 per cent, clothes and footwear by 5.23 per cent, furnishing and household equipment by 3.99 per cent, and restaurant and accommodation services by 3.16 per cent, said the report.

Lowest inflation in Lumbini Province 

During the review month, y-o-y price index in rural areas increased by 3.21 per cent, while in urban areas, it rose by 2.61 per cent.

Based on provinces, in the review month, y o-y consumer price inflation in Koshi Province is 4.29 per cent, Madhes Province 2.81 per cent, Bagmati Province 2.40 per cent, Gandaki Province 2.23 per cent, Lumbini Province 2.15 per cent, Karnali Province 2.21 per cent, and Sudurpashchim Province 3.14 per cent.

In the review month, y-o-y consumer price inflation in the Kathmandu Valley, Tarai, Hill and Mountain region surged to 2.64 per cent, 2.64 per cent, 2.65 per cent and 4.01 per cent respectively.

The y-o-y wholesale price inflation stood at 3.95 per cent in mid-May 2025 compared to 5.68 per cent a year ago.

The y-o-y wholesale price of consumption goods increased by 10.89 per cent while intermediate goods and capital goods increased by 0.10 per cent and 2.73 per cent respectively. 

The y-o-y wholesale price of construction material increased by 2.67 per cent in the review month.