KATHMANDU, Oct 14: The consumer price inflation moderated to 1.87 percent as of mid-September this year compared to 3.86 percent in the same period of the last fiscal year (FY), according to the latest report of Nepal Rastra Bank (NRB).
The ‘Current Macroeconomic and Financial Situation Report of Nepal’ unveiled by the central bank on Tuesday shows that the inflation rate by the end of the second month of the current FY was almost half in the review period of FY 2024/25. The decline in inflation rate was particularly due to the slowdown in price hike of food items.
Consumer price inflation moderates to 3.75 percent
As per the NRB report, food and beverage price index decreased 1.34 percent compared to the hike of 5.06 percent in the corresponding period of last FY. On the other hand, non-food and service inflation stood at 3.70 percent, up from 3.19 percent last year.
Under the food and beverage category, the year-on-year price index of ghee and oil sub-category increased 11.09 percent, non-alcoholic drinks 3.97 percent and milk products and eggs 2.66 percent. Similarly, the year-on-year price index of vegetable sub-category decreased 12.74 percent, spices 6.31 percent and pulses and legumes 3.58 percent.
Under the year-on-year non-food and services category, the price index of miscellaneous goods and services sub-category increased 11.77 percent, education 7.67 percent, clothes and footwear 6.29 percent, tobacco products 4.84 percent, and furnishing and household equipment 4.55 percent while the year-on-year price index of insurance and financial services sub-category decreased 0.22 percent.
Province-wise, the consumer price inflation in Koshi Province was 2.99 percent, Madhesh Province 1.74 percent, Bagmati Province 1.72 percent, Gandaki Province 1.47 percent, Lumbini Province 1.76 percent, Karnali Province 1.85 percent, and Sudurpashchim Province 0.88 percent in the review month.
The consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region stood at 2.21 percent, 1.70 percent, 1.68 percent and 2.51 percent respectively, as of mid-September 2025/26.
