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Wed, February 21, 2024

Nepal’s consumer price inflation remains at 7.88 pc: NRB data

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KATHMANDU: The consumer price inflation remained at 7.88% in mid-February 2023 compared to 6.24% a year ago, according to the Current Macroeconomic and Financial Situation of Nepal (based on seven months’ data ) released by Nepal Rastra Bank. Food and beverage inflation stood at 6.19% while non-food and service inflation rose to 9.22% in the review month. Under the food and beverage category, the year-on-year price index of restaurant and hotel subcategory increased 15.24%, cereal grains and their products 12.39%, tobacco products 10.83%, alcoholic drinks 8.78%, and spices 8.04%. Under the non-food and services category, y-o-y price index of transportation subcategory increased 15.58%, health 10.39%, housing and utilities 9.78%, furnishing and household equipment 9.00% and recreation and culture 8.81%. In seven months of the current fiscal year 2022/23, merchandise imports decreased 19.9% to Rs 919.17 billion against an increase of 42.8%  a year ago. Destination-wise, imports from India, China and other countries decreased 18.0%, 24.3%, and 22.0% respectively. Imports of petroleum products, sponge iron, chemical fertilisers, gold, other stationeries, among others, increased while imports of transport equipment and parts, medicine, MS billet, telecommunication equipment and parts, and silver among others decreased in the review period. Likewise, merchandise exports decreased 29.0% to Rs 93.43 billion against an increase of 88.3% in the same period of the previous year. Destination-wise, exports to India and China decreased 37.7% and 13.4% respectively while exports to other countries increased 8.0%. Exports of zinc sheet, cardamom, particle board, woollen carpets, polyester yarn and thread among others increased while exports of soyabean oil, palm oil, oil cakes, textiles, silverware and jewellry among others, decreased in the review period. Remittance inflows increased 27.1% to Rs 689.88 billion during the period of seven months of current FY 2022/23 against a decrease of 4.4% in the same period of the previous year. In US Dollar terms, remittance inflows increased 16.4%  to 5.30 billion in the review period against a decrease of 5.3%  in the same period of the previous year. Balance of Payments (BOP) remained at a surplus of Rs 133.21 billion in the period of seven months compared to a deficit of Rs 247.03 billion in the same period of the previous year. In US Dollar terms, the BOP remained at a surplus of 1.01 billion in the review period against a deficit of 2.07 billion in the same period of the previous year. Gross foreign exchange reserves increased 13.8% to Rs 1383.33 billion in mid-February 2023 from Rs 1215.80 billion in mid-July 2022. In US dollar terms, the gross foreign exchange reserves increased 10.2%  to 10.50 billion in mid-February 2023 from 9.54 billion in mid-July 2022. During the seven months of current FY, total expenditure of the federal government according to data from Financial Comptroller General Office (FCGO), Ministry of Finance, stood at Rs 667.66 billion. The recurrent expenditure, capital expenditure and financial management expenditure amounted to Rs 531.50 billion, Rs 66.30 billion and Rs 69.86 billion respectively in the review period. In the review period, total revenue mobilisation of Federal Government (including the amount to be transferred to provincial and local governments) stood at Rs 514.69 billion. The tax revenue amounted Rs 464.19 billion and non-tax revenue Rs 50.50 billion in seven months' time. Broad money (M2) increased 4.7% in the review period compared to an increase of 2.8%  in the corresponding period of the previous year. On y-o-y basis, M2 expanded 8.8%  in mid-February 2023. Deposits at Banks and Financial Institutions (BFIs) increased Rs 253.97 billion (5.0% ) in the review period compared to an increase of Rs 167.34 billion (3.6% ) in the corresponding period of the previous year. On y-o-y basis, deposits at BFIs expanded 10.5%  in mid-February 2023. Private sector credit from BFIs increased Rs 148.12 billion (3.2% ) in the period of first seven months compared to an increase of Rs 503.99 billion (12.3% ) in the corresponding period of the previous year. On y-o-y basis, credit to the private sector from BFIs increased 3.9%  in mid-February 2023. READ ALSO:
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