Consumer price inflation eases to 1.68 pc in mid-August of current FY

KATHMANDU: Consumer price inflation in Nepal stood at 1.68% year-on-year in mid-August in fiscal year 2025/26, down from 4.09% a year earlier, according to the latest macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on Monday.

Food and beverage prices fell by 2.28% year-on-year, while non-food and service inflation rose to 3.95% in the review month. In mid-August 2024, those indices had increased by 6.17% and 2.94% respectively.

Within the food and beverage category, the year-on-year price index rose for ghee and oil (10.97%), non-alcoholic drinks (4.64%) and fruit (3.01%). Vegetables saw a sharp drop of 18.56%, while spices fell by 4.81% and meat and fish by 2.41%.

Under non-food and services, prices climbed for miscellaneous goods and services (10.60%), education (7.67%), clothes and footwear (6.84%), furnishing and household equipment (5.06%) and tobacco products (4.68%), while insurance and financial services dipped by 0.22%.

Inflation in rural areas stood at 1.65%, compared with 1.70% in urban areas. By province, mid-August consumer inflation stood at 2.84% in Koshi, 1.86% in Madhesh, 1.67% in Bagmati, 1.03% in Gandaki, 1.35% in Lumbini, 1.79% in Karnali and 0.31% in Sudurpashchim. In the Kathmandu Valley, it stood at 2.26%, in the Tarai at 1.33%, in the Hill region at 1.56% and in the Mountain region at 2.59%.

According to NRB, wholesale price inflation stood at 2.37% year-on-year, down from 3.66% a year earlier. Consumption goods rose by 6.57%, intermediate goods fell by 0.12% and capital goods climbed by 2.96%. The wholesale price index for construction materials increased by 4.08%.

By comparison, India’s consumer price inflation stood at 2.07% in August 2025, above Nepal’s mid-August rate.