Kathmandu, Nepal - Consumer price inflation in Nepal has risen to 6.05 percent in mid-December 2024, up from 4.95 percent a year ago, the central bank reported on Friday.
The Nepal Rastra Bank's "Current Macroeconomic and Financial Situation of Nepal" report revealed that food and beverage inflation stood at 9.99 percent, while non-food and service inflation reached 3.92 percent in the review period.
Despite the inflationary pressures, several key economic indicators remain positive. Merchandise exports increased by 16.5 percent, driven by strong growth in exports to India and China. Remittance inflows also saw a modest increase of 4.4 percent.
The current account maintained a surplus, and the balance of payments recorded a surplus of Rs 225.34 billion. Notably, the gross foreign exchange reserves increased by 11.4 percent to Rs 2273.26 billion, providing a cushion against potential economic shocks.
Key Takeaways:
Inflation on the Rise: Consumer price inflation has increased, primarily driven by food and beverage prices.
Export Growth: Merchandise exports have shown significant growth, particularly to India and China.
Remittance Inflows: Remittance inflows have continued to increase, albeit at a slower pace than the previous year.
Healthy Reserves: The country's foreign exchange reserves have increased substantially, bolstering economic stability.
Outlook:
The Nepal Rastra Bank will continue to monitor economic developments closely and adjust its policies as needed to address inflationary pressures and maintain macroeconomic stability.
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