Consumer price inflation rises to 5.04 pc in mid-May: NRB report

KATHMANDU: Year-on-year consumer price inflation in Nepal rose to 5.04% in mid‑May 2026, up from 2.77% a year earlier, according to the macroeconomic and financial situation report issued by Nepal Rastra Bank (NRB) on Tuesday.

The report says food and beverage inflation stood at 4.63% and non‑food and services inflation was 5.26% in the review month, compared with increases of 1.52% and 3.45% respectively in the same period last year. Average consumer price inflation over the 10 months of the current fiscal year was 2.66%, down from 4.39% in the same period a year ago.

Within the food and beverage category, fruit prices rose 18.60%, ghee and edible oils increased 13.99%, and vegetables were up 5.40%. Meat and fish prices rose 4.16%, while pulses and legumes and spices recorded declines of 1.67% and 0.65% respectively.

Among non‑food and services, miscellaneous goods and services showed the largest increase at 19.90%. Transportation costs rose 15.30%, education expenses increased 5.54%, alcoholic drinks were up 4.77% and clothing and footwear rose 4.73%.

The report notes a divergence between urban and rural inflation: year-on-year inflation in urban areas was 5.29%, compared with 4.35% in rural areas. By region, the Terai recorded 5.59%, the Kathmandu Valley 4.90%, the Hill region 4.73% and the Mountain region 3.73%.

Provincial figures for the review month showed Koshi Province with the highest year-on-year inflation at 5.64%, followed by Madhesh at 5.47% and Lumbini at 5.31%. Bagmati recorded 4.55%, Gandaki 4.86%, Karnali 4.88% and Sudurpashchim 4.65%.

On the wholesale front, year-on-year wholesale price inflation stood at 5.96% in mid‑May, up from 3.95% a year earlier. The wholesale price index for consumption goods decreased by 8.63%, while intermediate goods rose 15.59% and capital goods increased 4.61%. The wholesale price index for construction materials increased 2.47% in the review month.

Compared with the region, consumer price inflation in Nepal was 5.04% in mid‑May 2026, while India’s inflation rate stood at 3.48% in April 2026, the report says. The central bank’s findings are based on data collected through mid‑May 2026.