Consumer price inflation eases to 2.42 pc in mid-January 2026: NRB

KATHMANDU: Nepal’s year-on-year consumer price inflation stood at 2.42% in mid-January 2026 compared with 5.41% a year earlier, according to the macroeconomic and financial situation report based on six months’ data ending mid-January of fiscal year 2025/26 released by Nepal Rastra Bank (NRB) on Monday.

The central bank said food and beverage inflation decreased 0.09% year-on-year in the review month, while non-food and service inflation stood at 3.81%. During the same period in the previous year, the price indices for these groups increased by 7.67% and 4.19%, respectively.

The average inflation stood at 1.70% in the sixth month of the current fiscal year, down from 4.97% a year ago.

Under the food and beverage category, the year-on-year price index of the fruit sub-category increased 5.20%, ghee and oil rose 4.96%, and non-alcoholic drinks climbed 3.04%, while the price index of pulses and legumes decreased 5.52%, spices fell 3.92%, and cereal grains and their products declined 3.70%.

Under the non-food and services category, the year-on-year price index of the miscellaneous goods and services sub-category surged 21.75%, education increased 7.56%, clothes and footwear rose 5.29%, tobacco products went up 4.15%, and alcoholic drinks climbed 3.85%, while insurance and financial services edged down 0.03%.

During the review month, year-on-year consumer price inflation in rural areas increased 1.99%, while in urban areas it rose 2.57%.

By province, year-on-year consumer price inflation stood at 3.25% in Koshi Province, 3.37% in Madhesh Province, 2.10% in Bagmati Province, 1.76% in Gandaki Province, 2.62% in Lumbini Province, 1.08% in Karnali Province and 1.27% in Sudurpashchim Province.

In the review month, year-on-year consumer price inflation in Kathmandu Valley, Terai, Hill and Mountain regions stood at 2.48%, 2.65%, 1.94% and 2.66% respectively.

On the wholesale front, the year-on-year wholesale price inflation stood at 5.17% in mid-January 2026 compared with 4.01% a year ago. The year-on-year wholesale price inflation of consumption goods stood at 2.58%, while intermediate goods and capital goods stood at 7.07% and 2.58%, respectively. The year-on-year wholesale price index of construction material increased 3.48% in the review month.

The year-on-year consumer price inflation in Nepal remained at 2.42% in mid-January 2026, while such inflation in India stood at 1.33% in December 2025.