Nepal Witnessed Annual Inflation Rise to 7.74 Percent in FY 2022/23

Kathmandu, August 18 – The annual average consumer price inflation for the fiscal year 2022/23 has been reported at 7.74 percent, marking a notable increase from the preceding year’s 6.32 percent. The latest data released by Nepal Rastra Bank unveils intriguing insights into the evolving dynamics of Nepal’s consumer price landscape.

Food and Beverage Category: Varied Impact on Consumer Prices

Within the food and beverage category, specific sub-categories experienced diverse effects on consumer prices. The annual average consumer price index of the restaurant and hotel sub-category surged by 14.42 percent, while spices observed a considerable rise of 12.50 percent. The prices of cereal grains and their associated products escalated by 10.70 percent, tobacco products by 9.88 percent, and milk products and eggs by 9.23 percent.

Non-Food and Services Category: Shifting Patterns

In the non-food and services category, the annual average consumer price index underwent notable shifts. Within this realm, the transportation sub-category registered a substantial increase of 13.50 percent, indicative of the evolving dynamics within this sector. Recreation and culture experienced a 10.18 percent rise, while health costs escalated by 10.01 percent. Education and housing and utilities exhibited increases of 8.79 percent and 8.65 percent, respectively.

Year-on-Year Trends: Consumer Price Inflation Dynamics

The year-on-year (y-o-y) consumer price inflation rate stood at 7.44 percent in mid-July 2023, contrasting with the previous year’s rate of 8.08 percent. This variance indicates a nuanced trajectory, reflective of the shifting economic circumstances and consumer behavior over the past year.