KATHMANDU, Oct 15: Consumer price inflation skyrocketed to 6.34 percent in mid-September of the current fiscal year, more than triple the rate recorded during the corresponding period last year. According to the latest report of Nepal Rastra Bank (NRB), inflation during the review period was driven largely by higher food prices and supply disruptions caused by floods and landslides.
The Current Macroeconomic and Financial Situation Report of Nepal, released by the central bank on Thursday, states that inflation stood at 6.34 percent between mid-August and mid-September of Fiscal Year 2026/27, up from 1.87 percent during the same period a year earlier. Inflation in mid-August of the current fiscal year was recorded at 5.96 percent.
The rise in consumer prices was primarily driven by increases in food and beverage costs. Inflation in the food and beverage category reached 5.69 percent during the review period, compared to a decline of 1.34 percent in the corresponding month of the previous fiscal year. Prices in the non-food and services category also increased by 5.69 percent, up from 3.70 percent year-on-year.
Effect of inflation in Kathmandu Valley: Prices of food and bev...
Traders attributed the increase in market prices largely to supply disruptions caused by floods and landslides, which damaged key road networks across the country, including sections of the Prithvi Highway. Major highways and road corridors in Kavrepalanchok, Sindhupalchok, Ilam, Rasuwa, Rukum West and Lamjung were affected following recent flooding incidents, including the August 26 flooding along the Bhotekoshi -Trishuli river corridor.
Within the food and beverage category, the year-on-year price index increased by 16.68 percent for ghee and oil, 15.99 percent for fruits, 12.14 percent for sugar and sugar products, 7.34 percent for meat and fish, 7.07 percent for vegetables, and 6.71 percent for spices.
Under the non-food and services category, transportation prices rose by 12.77 percent year-on-year, followed by alcoholic beverages at 8.83 percent, clothing and footwear at 7.06 percent, furnishing and household equipment at 6.01 percent, and tobacco products at 5.45 percent.
During the review period, inflation in rural areas stood at 6.78 percent, compared with 6.19 percent in urban areas.
Among the provinces, Madhesh Province recorded the highest inflation rate at 7.48 percent, while Sudurpashchim Province posted the lowest at 5.16 percent. By geographical region, the Tarai registered the highest inflation rate at 6.89 percent.
