KATHMANDU: The y-o-y consumer price inflation stood at 7.52% in mid-August 2023 compared to 8.26% a year ago, according to the macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on Sunday.
Food and beverage inflation stood at 8.95% while non-food and service inflation stood at 6.42% in the review month.
Under the food and beverage category, y-o-y price index of spices sub-category increased 45.56%, cereal grains and their products 13.20%, milk products and eggs 12.19%, restaurant and hotel 11.05% and vegetable 10.80% while y-o-y price index of ghee and oil sub-category decreased 15.13%.
Under the non-food and services category, y-o-y price index of recreation & culture sub-category increased 15.55%, education 9.10%, housing & utilities 6.93% and furnishing and household equipment 6.79% while y-o-y price index of the transportation sub-category decreased 0.81%.
Likewise, during the first month of 2023/24, merchandise imports decreased 1.6% to Rs.129.24 billion compared to a decrease of 12.9% a year ago.
Destination-wise, imports from India and China increased 3.3% and 17.0% respectively while imports from other countries decreased 23.1%. Imports of rice/paddy, M.S. wire rod, bars, coils and others, chemical fertiliser, hot rolled sheet in coil, electrical goods, among others increased whereas imports of petroleum products, crude soyabean oil, crude palm oil, medicine, M.S. billet, among others decreased in the review period.
The total trade deficit decreased 0.7% to Rs.115.71 billion during the first month of 2023/24. Such a deficit had decreased 10.4% in the corresponding period of the previous year. The export-import ratio decreased to 10.5% in the review period from 11.3% in the corresponding period of the previous year.
During the first month of 2023/24, merchandise imports from India by paying convertible foreign currency amounted to Rs 17.30 billion. Such an amount was Rs 13.37 billion in the same period of the previous year.
Similarly, gross foreign exchange reserves increased 2.2% to Rs 1573.12 billion in mid-August 2023 from Rs 1539.36 billion in mid-July 2023. In US dollar terms, the gross foreign exchange reserves increased 1.2% to 11.85 billion in mid-August 2023 from 11.71 billion in mid-July 2023.
Of the total foreign exchange reserves, reserves held by NRB increased 2.9% to Rs1385.24 billion in mid-August 2023 from Rs1345.78 billion in mid-July 2023. Reserves held by banks and financial institutions (except NRB) decreased 2.9% to Rs187.89 billion in mid-August 2023 from Rs 193.59 billion in mid-July 2023. The share of Indian currency in total reserves stood at 21.9% in mid-August 2023.
According to the Ministry of Finance, Financial Comptroller General Office (FCGO), the total expenditure of the Nepal Government stood at Rs 35.04 billion during the first month of 2023/24. The recurrent expenditure, capital expenditure and financial expenditure amounted to Rs 12.14 billion, Rs 0.82 billion and Rs.22.08 billion respectively in the review period.
Deposits at Banks and Financial Institutions (BFIs) decreased Rs 133.24 billion (2.3%) in the review period compared to a decline of Rs 100.77 billion (2.0%) in the corresponding period of the previous year. On y-o-y basis, deposits at BFIs expanded 11.9% in mid-August 2023.
The share of demand, saving and fixed deposits in total deposits stood at 5.0%, 26.7% and 61.3% respectively in mid-August 2023. Such shares were 7.2%, 26.9% and 58.8% respectively a year ago.
The share of institutional deposits in total deposits of BFIs stood at 35.2% in mid-August 2023. Such a share was 37.4% in mid-August 2022.
