Inflation drops to 4.06% from 5.44%

By A Staff Reporter,Kathmandu, Aug. 25: The consumer price inflation has dropped in the last fiscal year 2024/25. According to the current macroeconomic and financial situation of Nepal published by Nepal Rastra Bank (NRB) Sunday, annual average consumer price inflation stood at 4.06 per cent in 2024/25 compared to 5.44 per cent a year ago.

Consumer inflation has decreased by 1.38 percentage points during the review year compared to the previous fiscal year.

According to NRB, the y-o-y consumer price inflation stood at 2.20 per cent in mid-July 2025 compared to 3.57 per cent a year ago. 

Under the food and beverage category, the annual average consumer price index of vegetable sub-category increased by 10.71 per cent, ghee and oil by 8.72 per cent, pulses and legumes by 7.90 per cent and cereal grains and their products by 6.13 per cent.

However, the annual average consumer price index of spices decreased by 2.62 per cent and meat and fish by 0.34 per cent.

Under the non-food and services category, the annual average consumer price index of miscellaneous goods and services sub-category increased by 9.39 per cent, clothes and footwear by 6.09 per cent, alcoholic drinks by 5.65 per cent, furnishing and household equipment by 4.78 per cent and tobacco products by 4.37 per cent.

The annual average food and beverage category inflation stood at 4.69 per cent in 2024/25 compared to 6.47 per cent a year ago.

The y-o-y food and beverage category inflation stood at -1.19 per cent in mid-July 2025 compared to 4.04 per cent a year ago.

The annual average inflation in non-food and services category stood at 3.71 per cent in 2024/25 compared to 4.64 per cent a year ago.

The y-o-y non-food and services category inflation stood at 4.12 per cent in mid-July 2025 compared to 3.26 per cent a year ago.

In 2024/25, the annual average consumer price inflation in the Kathmandu Valley, Tarai, Hill and Mountain stood at 3.77 per cent, 4.14 per cent, 3.86 per cent and 4.89 per cent respectively.

In mid-July 2025, the y-o-y consumer price inflation in Kathmandu Valley stood at 2.32 per cent, in Tarai 1.85 per cent, in Hill 2.19 per cent and in Mountain 3.75 per cent. The annual average consumer price inflation of 2024/25 in rural areas stood at 4.40 per cent and in urban areas 3.94 per cent.

The annual average wholesale price inflation stood at 3.84 per cent in 2024/25 compared to 3.92 per cent a year ago.

The y-o-y wholesale price inflation stood at 1.05 percent in mid-July 2025 compared to 4.41 per cent a year ago.

The annual average salary and wage rate index stood at 2.85 per cent in 2024/25 compared to 5.03 per cent a year ago. The y-o-y salary and wage rate index increased by 2.63 per cent in the fourth quarter of 2024/25 compared to 3.56 per cent a year ago.