Prices resume upward climb

Prices have again starting ascending, thanks to a whopping rise in the price of sugar and sugar related products, pulses, spices, vegetables and meat.
"Year on year (y-o-y) inflation, as measured by the consumer price index (CPI), moderated to 11.8 per cent in mid-January," said Nepal Rastra Bank, the central authority. It had moderated to 11.3 per cent in mid-December.
Though the central bank in its report for the sixth month price analysis said that the CPI moderated to 11.8 per cent against a 14.4 per cent increase in the same period last year. "The price index of food and beverages group increased by 18.1 per cent whereas the index of non-food and services group rose only by 4.5 per cent," said the report.
The index of food and beverages and non-food and services group had risen by 18.3 per cent and 10.3 per cent respectively in the same period last year. Of the items in food and beverage group, price indices of sugar and sugar related products had the highest increased rate of 77.5 per cent against an increase of 37.3 per cent in the same period last year.
Similarly, the price indices of pulses, spices, vegetables and fruits as well as meat, fish and eggs sub-groups increased by 36.7 per cent, 34.8 per cent, 29.2 and 22.8 per cent, respectively against an increase of 25.6 per cent, 8.1 per cent, 13.3 per cent and 22.5 per cent in the same period last year.
The index of grains and cereal products subgroup also witnessed an increment of 11.7 per cent compared to 16.5 per cent increase in the same month last year. "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," said NRB. However, the price index of transport and communication declined by 7.5 per cent in the review period. It had increased by 20.7 per cent during the same period last year.
Region-wise, according to price index the Terai is the most expensive place to live in as it rose by 12.5 per cent followed by 11.8 per cent in Hills and 10.6 per cent in Kathmandu Valley. The respective rates were 13.6 per cent, 14.2 per cent and 15.8 per cent last year.
In the review period, the y-o-y core inflation rose to 12.6 per cent, a moderation from 13.2 per cent a year ago.
Wholesale prices under the agricultural commodities group, the price index of cash crops, increased by a whopping 64.7 per cent against a decline of 7.7 per cent a year ago. The price index of spices, pulses and livestock production increased by 50.3 per cent, 34 per cent and 33.8 percent, respectively as compared to an increase of 7.2 per cent, 20 per cent and 27.9 per cent respectively during the same period last year. Within the group of domestic manufactured commodities, the price index of food-related products increased by 15.1 per cent as compared to a rise of 12 per cent a year ago.
Within the imported commodities group, the price indices of chemical fertilizers and chemical goods declined by 11.9 percent in the review period as compared to an increase of 8.3 per cent in the corresponding period of previous year.