Consumer price inflation rises to 5.14 pc in mid-July: NRB
KATHMANDU: Year‑on‑year consumer price inflation in Nepal stood at 5.14% in mid‑July 2026, up from 2.20% a year earlier, Nepal Rastra Bank (NRB) said on Thursday. The central bank’s annual macroeconomic data showed the Fiscal Year 2025/26 average consumer price inflation moderated to 3.08%, down from 4.06% in the previous fiscal year.
Inflation in the food and beverage group eased on an annual average basis to 1.04% in FY 2025/26, compared with 4.69% a year earlier. On a year‑on‑year basis, food and beverage inflation was 5.25% in mid‑July 2026, recovering from a fall of 1.19% recorded in mid‑July 2025. Within the group, the annual average price index for ghee and oil rose 10.05%, fruit increased 7.09%, and non‑alcoholic drinks grew 3.28%. Price declines were recorded for vegetables (‑3.95%), spices (‑3.66%) and pulses and legumes (‑3.41%).
The non‑food and services category posted an annual average inflation rate of 4.21% in FY 2025/26, up from 3.71% a year earlier. Year‑on‑year inflation in this category was 5.08% in mid‑July 2026, compared with 4.12% a year earlier. Sub‑category increases were led by miscellaneous goods and services (17.61%), education (7.04%), transport (5.80%) and clothes and footwear (5.56%). Insurance and financial services edged down by 0.01%.
Regionally, the annual average consumer price inflation for FY 2025/26 was highest in the Tarai at 3.28%, followed by the Kathmandu Valley at 3.16%, the Hill region at 2.81% and the Mountain region at 2.73%. As of mid‑July 2026, year‑on‑year inflation was 5.63% in the Tarai, 4.97% in the Hill region, 4.80% in the Kathmandu Valley and 4.04% in the Mountain region. Annual average inflation was 3.22% in urban areas and 2.65% in rural areas, while year‑on‑year inflation in mid‑July rose to 5.19% in urban areas and 4.99% in rural areas.
By province, annual average inflation in FY 2025/26 stood at 3.77% in Koshi, 3.65% in Madhesh, 3.29% in Lumbini, 2.79% in Bagmati, 2.60% in Karnali, 2.59% in Gandaki and 2.05% in Sudurpashchim. For mid‑July 2026, year‑on‑year inflation was 5.94% in Madhesh, 5.61% in Koshi, 5.25% in Lumbini, 5.12% in Gandaki, 5.01% in Karnali, 4.68% in Bagmati and 4.27% in Sudurpashchim.
In a cross‑border comparison, Nepal’s year‑on‑year consumer price inflation of 5.14% in mid‑July 2026 exceeded India’s consumer price inflation of 4.45% recorded in July 2026. Wholesale price inflation in Nepal also picked up: the annual average stood at 4.27% in FY 2025/26, up from 3.84% a year earlier, while year‑on‑year wholesale price inflation rose to 6.67% in mid‑July 2026 from 1.05% a year earlier.
