Inflation eased to 3.6 per cent

Despite price hike in edible oils and pulses and legumes, consumer price inflation in the last fiscal year dropped at 3.6 per cent -- probably the lowest annual average price rise in the past two decades.

According to the ‘Current Macroeconomic and Financial Situation of Nepal’ released by the central bank, the inflation rate in the last fiscal year 2020-21 was lower by 2.55 point per cent compared to that of 6.15 per cent in 2019-20.

The Nepal Rastra Bank (NRB) report revealed that the average consumer price of ghee and oil, pulses and legumes, tobacco products, and transportation sub-groups rose by 17.54 per cent, 10.65 per cent, 9.83 per cent and 6.41 per cent, respectively on an annual basis.

The annual average non-food and services inflation stood at 2.51 per cent in 2020-21 compared to 4.61 per cent a year ago, the NRB report reads, adding that the inflation in the Kathmandu Valley subdued to 3.33 per cent from 6.96 per cent, whereas the inflation in Terai was down to 3.68 per cent from 6.29 per cent. "The inflation in the hills stood at 3.87 per cent, down from 5.10 per cent, whereas it decreased to 2.87 per cent from 4.91 per cent in the mountain region.