Inflation reaches 8.26 in mid-August

Kathmandu, Sept. 15

The year-on-year consumer price inflation has stood at 8.26 per cent in the first month of the current Fiscal Year 2022/23 which is almost double compared to 4.35 per cent a year ago.

In its report on 'Current Macroeconomic and Financial Situation of Nepal', the Nepal Rastra Bank (NRB) informed that food and beverage inflation stood at 7.11 per cent whereas non-food and service inflation stood at 9.18 per cent in the first month.

Prices of ghee and oil, fruits, restaurant and hotel, alcholic drinks and milk products and eggs rose by 19.58 per cent, 18.79 per cent, 11.84 per cent, 10.24 and 10.19 per cent respectively on year-on-year basis.

Likewise, in non-food category transportation prices have gone significantly up by 23.88 per cent. Prices of health, furnishing and household equipment, education and housing and utilities sub-categories rose by 10.54 per cent, 9.04 per cent, 8.11 per cent and 7.86 per cent respectively.

In the review month, the Kathmandu Valley, Terai, Hill and Mountain witnessed 7.39 per cent, 8.72 per cent, 8.64 per cent and 6.64 per cent inflation respectively. Inflation in these regions were 3.70 per cent, 4.11 per cent, 5.63 per cent and 3.58 per cent respectively a year ago.

Meanwhile, gross foreign exchange reserves decreased by 1.5 per cent to Rs.1197.85 billion in mid-August 2022 from Rs.1215.80 billion in mid-July 2022.

Based on the imports of first month of 2022/23, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 9.4 months, and merchandise and services imports of 8 months.

During the first month of this fiscal, merchandise exports decreased 28.7 per cent to Rs.14.81 billion against an increase of 115.9 per cent in the same period of the previous year. Merchandise imports decreased by 12.9 per cent to Rs.131.29 billion this year against an increase of 75.7 per cent a year ago.

Likewise, remittance inflows increased by 20.3 percent to Rs.92.21 billion in the review period against a decrease of 17.4 per cent in the same period of the previous year.

Number of Nepali workers (institutional and individual-new) taking approval for foreign employment increased by 222.8 per cent to 44,540 in the review period. The number of Nepali workers (Renew entry) taking approval for foreign employment increased by 75.4 per cent to 20,390. It had increased by 286.1 per cent in the same period of the previous year. 

Published in The Rising Nepal daily on 16 September 2022.