Prices in the Valley spiral alarmingly, inflation at 14.5pc

Kathmandu valley is becoming more expensive by the day to live in. However, while it might seem that life in the capital is more expensive than in other parts of the country regionwise prices in Kathmandu Valley increased less than those in the Tarai region last year in the first four months, according to Nepal Rastra Bank.
Inflation here has increased by 16.8 per cent, the highest among hills and Tarai, said a report of this fiscal year's first four months by the Nepal Rastra Bank (NRB). Indeed, there seems no end to the price hike in the Valley in the near future as prices go on skyrocketing. Living in Tarai, however, is cheaper than living in the hills or Kathmandu Valley. The hills registered a 14.2 per cent and the Tarai registered a 13.3 per cent price rise during the period.
"Last year, the price rise in the Tarai, hills and Kathmandu Valley was 6.6, 5.7 and 6.1 per cent respectively," said the NRB report.
The price of food and beverages increased by more than double to 17 per cent, from 8.4 per cent in the same period last year. Non-food and service sectors' price increased by almost by triple, to 11.7 per cent from 4.1 per cent in the first four months of the last fiscal year pushing the year-on-year inflation to 14.5 per cent against 6.3 per cent in the same period last year.
The central bank's figure is a challenge to the bank itself as it had, in its monetary policy for 2008-09, vowed to bring inflation down to 7.5 per cent.
"Assuming no further adjustment in the petroleum products' prices takes place, the annual average consumer inflation is projected to moderate at 7.5 per cent," the Monetary Policy had said. While the price of petroleum products has been brought down by the end of fourth month of this fiscal year, yet inflation stands at 14.5 per cent.
While the price of sugar and sugar-related products increased by more than double, with prices shooting up by 37.6 per cent as against 18 per cent in the same period last year, almost all food items' and products' prices witnessed more than a double and even triple price hike.
Inflation in Nepal is directly related to India where it has come down but is on the rise here, which is alarming.
"It's too early to say that the government has failed to control the price hike, but the situation is alarming," said Dr Shanker Sharma, former vice-president of National Planning Commission. "The government should be cautious and take measures to control inflation," he suggested.
The Maoist-led government came to power on August 18 - exactly a month after the first month of this fiscal year. With every other month of this fiscal year, price rise has been steady. Despite the whopping price hike, salary and wages have not increased accordingly. Salary and wages increased by just 10 per cent against a rise of 10.1 per cent in the same period last fiscal year.