Nepal's Inflation Surges to 5.96% in Mid-August as Food Prices Jump 6.77%

KATHMANDU — Consumer price inflation in Nepal climbed to 5.96 percent in mid-August, the first month of the current fiscal year, driven by a sharp rise in food and beverage prices, according to data released by Nepal Rastra Bank (NRB).

Food and beverage prices surged 6.77 percent, while the cost of non-food goods and services rose 5.52 percent, the NRB's "Current Macroeconomic and Financial Situation of Nepal" report showed.

The year-on-year inflation reading more than tripled from 1.68 percent recorded during the same period of the previous fiscal year, underscoring a dramatic acceleration in price pressures.

In the review month of FY 2025/26, the price index of the food and beverages group had decreased by 2.28 percent, while that of the non-food and services group had increased by 3.95 percent.

Within the food and beverages category, the year-on-year price increases between mid-July and mid-August were:

• Ghee and oil: 15.62 percent
• Fruits: 15.39 percent
• Meat and fish: 8.65 percent
• Vegetables: 6.90 percent
• Spices: 4.80 percent

Within the non-food and services category, the year-on-year price increases were:

• Transportation: 13.17 percent
• Alcoholic beverages: 7.20 percent
• Clothing and footwear: 5.52 percent
• Tobacco products: 4.97 percent

In the review month, consumer price inflation in rural areas stood at 6.18 percent, compared to 5.88 percent in urban areas. Among provinces, Madhesh Province recorded the highest inflation rate at 6.94 percent, while Sudurpashchim Province recorded the lowest at 4.61 percent.

Region-wise, the Terai recorded the highest inflation rate at 6.64 percent.

Nepal's consumer price inflation in the review month was 1.14 percentage points higher than India's, which stood at 4.82 percent.