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Inflation Fell to 10.2 % in Mid-March

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Inflation Fell to 10.2 % in Mid-March
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April 20: As per the current ‘Macroeconomic and Financial Situation of Nepal’ published by Nepal Rastra Bank (NRB), the consumer price inflation has moderated fell to 10.2 percent in mid-March 2016 from the peak of 12.1 percent in mid-January 2016. NRB illustrate that consumer price inflation continued to show a glide path since mid-January-2016 on account of improved supply of fuel and other consumable items following the return of normalcy in the southern customs points.

Based on the eight months’ data of 2015/16, NRB statistics shows that food and beverage group inflation saw a pickup of 10.3 percent, non-food and services group inflation showed a growth of 10.2 percent in mid-March 2016.

Food and beverage items such as pulses and legumes sub-group and ghee and oil subgroup saw a price rise of 31.6 percent and 18.8 percent respectively in the review period. Likewise, prices of spices sub-group and clothes and footwear sub-group saw a growth of 16.6 percent and 15.3 percent respectively. 8. Geographically, the Kathmandu Valley witnessed a relatively higher rate of inflation at 12.7 percent followed by Hilly region at 10.4 percent, Terai region at 8.6 percent and Mountain region at 8.5 percent in the review period. Last year, both the Kathmandu Valley and the Hilly region had seen the same inflation rate of 7.1 percent followed 6.9 percent in the Terai region.

Likewise, the y-o-y wholesale price inflation rose 5.5 percent during the review period. It had seen the same percentage growth in the same period of the previous year. The wholesale price inflation of agricultural commodities and domestic manufactured commodities registered a growth of 9.1 percent and 6.3 percent respectively, whereas such inflation of imported commodities showed a decline of 2.8 percent in the review period. In the same period of the previous year, the increments in agricultural commodities and domestic manufactured commodities were 8.4 percent and 6 percent respectively whereas the price index of imported commodities had seen a decline of 0.8 percent.

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