Price hike cools dowm marginally

The price hike seems to cool down, though the government is unable to boost the trade and forex reserve has been continuously depleting.
Despite the rise in the prices of food prices – mainly sugar and sugar related products, vegetables and pulses – the year on year (y-o-y) inflation as measured by the consumer price index (CPI) moderated to 11.3 per cent in Mid-December 2009 against the 14.1 per cent increase in the same period last year, said central bank.
According to the Nepal Rastra Bank’s (NRB) first five month’s price analysis, the price index of food and beverages group has increased by 17.8 per cent whereas the index of non-food and services group rose only by 3.7 per cent. The index of food and beverages has gone slightly up from last year’s same period’s 17.2 per cent but the non-food and services group has dropped from last year’s same period’s 10.8 per cent respectively.
The sugar and sugar related products prices have increased by almost double as their price indices has recorded the highest increased rate of 56.9 per cent in comparison with an increase of 35.9 per cent in the same period last year.
Similarly, the price indices of vegetables and fruits, pulses, spices as well as meat, fish and eggs sub-groups increased by 39.3 per cent, 34.6 per cent, 28.4 per cent and 21.9 per cent respectively in comparison with an increase of only 3.4 per cent, 25.7 per cent, 10.1 per cent and 21.5 per cent in the same period last year. The index of grains and cereal products subgroup also witnessed an increment of 9.9 per cent compared with 18 per cent increase in the same period last year.
Similarly, within the group of non-food and services, the index of tobacco and related products has the highest increased rate of by 11.6 per cent compared to a rise of 15.1 per cent during the same period last year. “The price index of transport and communication has however, declined by 7.8 per cent. It had increased by 21.7 per cent during the same period last year,” the report said.
Region-wise, the prices have come down as the index of Terai rose by 12.3 per cent followed by 11.8 per cent in Hills and 9.3 per cent in Kathmandu Valley. The respective rates were 13.1 per cent, 13.6 per cent and 16.2 per cent in the same period last year.
In the review period, the y-o-y core inflation rose to 11.8 per cent, a moderation from 13.1 per cent a year ago, the central bank said.
However, the y-o-y wholesale price inflation has doubled as it has increased by 18.9 per cent compared with 10.1 per cent a year ago. The agricultural commodities prices have gone up by over six times to 38.7 per cent from to 6.1 per cent and domestic manufactured commodities prices have come down as it registered only 8.6 per cent growth against and 12.3 per cent a year ago. Similarly, the price indices of imported commodities declined by 3.1 per cent whereas it had increased by 14.9 per cent during the same period of last year, said the report.