Nepal’s annual inflation at 4.06% in FY 2024/25, food prices drive rise

KATHMANDU: Nepal’s annual average consumer inflation stood at 4.06% in the fiscal year 2024/25 (2081/82 BS), according to the Annual Macroeconomic and Financial Situation Report released by Nepal Rastra Bank on Sunday.

While overall inflation remained within the desired limit, the report highlights that the rise was more pronounced in essential food items than in non-food goods and services.

Under the food and beverage group, the annual average inflation was 4.69%, slightly lower than the previous year’s 6.47%.

The vegetable sub-group saw the highest surge with prices soaring 10.71%, followed by ghee and oil (8.72%), pulses and legumes (7.90%), and other food items (6.13%). In contrast, spices dropped 2.62%, and fish and meat prices dipped 0.34%.

In the non-food and services group, inflation stood at 3.71%, down from 4.64% in the previous year.

Notable increases were seen in miscellaneous goods and services (9.39%), clothing and footwear (6.09%), alcoholic beverages (5.65%), furnishings and household equipment (4.78%), and tobacco products (4.37%).

Regional Breakdown

• Kathmandu Valley: 3.77%

• Tarai: 4.14%

• Hill: 3.86%

• Mountain: 4.89%

The report shows that rural inflation averaged 4.40%, higher than urban inflation at 3.94%.

Provincial Inflation Rates

• Koshi: 5.46% (highest)

• Madhesh: 4.14%

• Bagmati: 3.57%

• Gandaki: 3.32%

• Lumbini: 3.70%

• Karnali: 3.31% (lowest)

• Sudurpaschim: 5.02%

The central bank noted that while inflationary pressures have eased compared to the previous year, volatility in food prices continues to burden households, particularly in rural and mountain regions.