The price hike seems to look up again.
The year-on-year inflation as measured by the consumer price index increased by 8.5 per cent in mid-September compared to 8.6 per cent of the same period of a year ago, according to macroeconomic report for second month of the current fiscal year published by Nepal Rastra Bank (NRB) here today.
The index of food and beverage group went up by 10.1 per cent and the index of non-food and services group increased by 7.2 per cent. The indices of the groups had increased by 12.2 per cent and 5.6 percent respectively in the same period of a fiscal year ago," said the report.
In the first month, the index of food and beverage group had increased by 9.9 per cent and the index of non-food and services group had surged by 5.8 per cent, respectively.
The double digit inflation has moderated to single digit since mid-May this year but the festive season seems to push the price up again.
As food price inflation has drastically mellowed down in the first month of the current fiscal year, targeted inflation rate of seven per cent was expected to be achievable. However the second month's food price and non-food price hike have once again starting to raise its head containing inflation will be a daunting task for the monetary authority.
Price rise rate had moderated to the 7.7 per cent in mid-August, according to NRB's report.
If the trend continues maintaining price stability is going to be difficult task for the central monetary authority in the coming days due to external factors.
Among the food group prices of vegetables and fruits had seen the highest jump of 49.1 per cent and 38.4 per cent, respectively. The food prices do not seem to abate soon as in October due to Dashain and Tihar prices will not be able to go down.
Along with consumer price, wholesale price has also seen rise to 7.1 per cent by mid-September from 5.1 per cent in mid-August.
Region-wise, the price index in Hills increased by 11 per cent followed by 8.4 per cent in Tarai and 6.7 per cent in Kathmandu Valley against last year's same period's 9.7 per cent, 6.6 per cent and 10.6 per cent.
Shrawan — 7.7 per cent
Bhadra — 8.5 per cent
(Source: Nepal Rastra Bank)