The festive season pushed the
market price up in mid-October as according to central bank data, the year-on-year
inflation in the first quarter of the current fiscal year has increased to 8.4
per cent against eight per cent a month ago.
The higher prices of meat and
fish, vegetable and restaurant and hotels bills, cereals, grains and their
products, tobacco products and clothing and footwear, in the Dashain festival,
from earlier two months, propelled the inflation up. "During the same
month in the last fiscal year, the inflation stood at 10.5 per cent," the
central bank added.
The government has, though,
targeted to contain inflation at eight per cent in the current fiscal year, it
could not be possible also due to Constituent Assembly (CA) elections – in
November – when not only the government spent some Rs 16 billion, the parties
have also spent recklessly to win the votes, flooding the market with liquidity
that will eventually push the inflation higher up.
No comments:
Post a Comment